Well do you know the last time the transfer case fluid was changed? Not sure which transfer case you have, so I looked it up here:
http://en.wikipedia.org/wiki/Jeep_Liberty
As you can read the later KJs have fulltime 4wd (4H) using Select-Trac with unlocked centre diff so it can be driven on dry roads without binding. It appears to me that you have a COmmand Trac system and thus 4Hi cannot be used on dry road surfaces as the axles are locked through the centre diff - and binding will result. Take it onto a soft or loose surface, dirt, mud, sand, etc to use 4WD.