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I'm a little confused by your first sentence. Did you engage 4HI, then find that you had no drive whatsoever to any wheel (engine revs, nothing happens), then smoke--or did you engage 4HI, the rears spun but the fronts didn't, and then smoke? If it's the former, I suspect your transmission overheated and boiled fluid out of its vent tube. Maybe that hose was damaged, wasn't on its barb right, or just blew off. The boiling fluid prevented the pump from making line pressure, so the clutches failed to engage, and you had no drive until the transmission cooled and the fluid settled down. How hot was it where you were, and how hard were you working it? Are you running an external transmission cooler? If it's the latter, that would suggest a transfer case issue. Park it on a surface you don't care about (gravel, neighbor's driveway) and try to put it in 4HI again. If you're right about a seal being bad and releasing hydraulic pressure meant for the clutches, and the transfer case hasn't already pumped itself dry (check the level first), it should start spraying again when the pump comes on. I wouldn't expect the case seal to be holding back line pressure, but I don't know the ATX14A very well. If it doesn't spray, check that it's actually in 4HI. Either way, the first thing I'd check is the fluid level and condition in your trans and transfer. Then I'd have a look at the breather to the transmission, see if it's still attached. The breathers shouldn't need hose clamps, but that doesn't mean it's a bad idea. I've heard of ATF puking onto exhaust components and starting fires.

Probably my two all time favorite SUV body styles. Nice shots! Sent from my SM-A102U using Tapatalk

Cascade Creek road today. Pretty rocky in some spots but not bad at all

My dad was in town so the two pathy generations visited Estes Park today. We tried to go up Pole Hill Road, but bailed when it started raining hard. The first stretch was much rockier than it seemed in videos and it was pushing his stock height to the limit. Mine probably could have made it all the way with some decent line selection, but we decided a drier day would be better. We ended up just taking some dirt roads up to a random trailhead and doing a bit of hiking

Oh sorry, yeah I've been searching for a while but there didn't seem to be any definitive answer on lifting more than 2 inches or so all around, other than a sub frame drop and I don't think I wanna do that, anyway thanks for the LR spring suggestion.