Transfer box will drive the output flange with the least resistance, ie a broken half shaft or cv joint. Putting it in difflock joins both output flanges together therefore driving the unbroken side thus making the motor move.Are you sure the problem is in the transfer box? A stripped input gear/shaft would result in no drive whatsoever. To check input gear/shaft remove the circular cover on the rear of the transfer box,its a common problem on boxes without the later modified input gear to wear away the splines,but as I said earlier, no drive at all is the result.