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Transfer box swap locked solid

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Aup I'm wondering if someone could clarify if I'm being stupid or whether I've actually got an issue. I've swapped a disco 1 1.2 lt230 into my 200tdi defender 90. The issue is that I can roll the chassis around( fully built drivetrain) with the gbx and tbx in neutral but as soon as I put the transfer box in any gear it locks the drivetrain solid, although the gearbox is in neutral, only allowing about 10 inches of movement. Is there somthing wrong with the transfer box or am I missing something because I would have thought the transfer box should still be able to move with the gearbox in neutral? 

Cheers Sam 


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