1996 Xplorer 400 4x4
 

So i have never experienced this issue. I am not sure what to think of it. I think it is the transmission but i am not sure.

I have been reading about peoples transmissions issues by searching, however it seems as though i do not have the same issue. I can shift into Hi,Lo, and Rev, and the will drive and go - Here is when the issue starts.

If i am steady on the throttle, its okay (some what, still slips a little), but when i let off the gas it feels like the Lo gear is grabbing and the motor revs high, and lunges forward, but when i ger back on the gas its okay again.

It does not do this in Lo gear - Is this a transmission issue or a clutching issue?:huh:

Could be silent chain in trans slipping? Also have you checked the chain and sprockets? Plus as you say could be clutch problem (worn ramp buttons in rear clutch or clutch belt?) Just check the teeth on the drive sprockets and chain slack,if ok,then I would check the clutch out for excess belt slack,plus have the rear clutch checked out. If this all checks out could have "silent" chain slack in transmission causing the problem? OPT

It is not the buttons as these have already been replaced. I replaced those last year around this time. I really think it is a transmission issue, but i hope it isn't because from the sounds of it you are talking repair costs that could exceed what the machine is worth.

The chain is not that costly(about 40 $ or so) ,its just the labor to get the trans out and split! The more you can do yourself if you're up to it can save a lot of $$. OPT

Yea that is what worrys me. I do not have to time to tear it apart, but if i pay someone, it will cost an arm and a leg.