We've heard that there is a new Technical Service Bulletin (TSB) out for the 1999 Grand Cherokee regarding the Quadra-Drive problem. Here's an excerpt from the rec.autos.makers.jeep+willys:

Just got back from service on my mid-Jan 99 build date JGC V8 Laredo Quadra-Drive. There's a brand new TSB about a new transfer case. I guess they've made some changes now. They didn't recommend replacing my transfer case, but it seems they have modified the gerotor pump in the new transfer case.

...snip...

My Jeep's in great shape except for a leaking pinion seal on the rear diff. They [the Jeep dealership] are still saying the light moaning & general drivetrain groaning is normal. The main problems according to them have been either with the early transfer cases binding up very badly in tight turns due to the cutting fluid not being adequately flushed in the factory or with the Dana 44(?) rear ends being built too tight & having trouble with the side bearings as a result. I guess when the side bearings are a problem it sounds like bricks rolling around in a 55 gallon drum.

We've been reading Jeepin.com for as long as we can remember, and one thing we always enjoy is their attention to detail. They recently posted a page comparing two Jeep Cherokee "official" photographs that appear to be the same Jeep in the same position, but on two different mountains! It appears that the graphics department at DaimlerChrysler has been swapping backgrounds to get new "exotic locations" for Cherokee photoshoots. Check it out here...