NP231 Transfer case question

I'm new dealing with a transfer cases and have a very
simple question, which will make most of you laugh;
I had a machine shop rebuild my 87-NP231 and put in
some upgrades like new input shaft and slip yoke
eliminator, but now the both the outputs seem locked
together when in gear, ie; 2 high both turn, of coarse
in 4H and 4L, it does free turn from the input in neuteral,
but the front does'nt seem to free wheel in 2H,
is it supose to and the front diff goes in and out for 4WD
with the vacume?
Thanks , New Guy

Thanks for the reply, thats what I was thinking but was'nt sure.
The new input shaft is from Novack and did make changes with
internal bearings but was'nt sure about the rest.
Any recondmendations on shop to do the fix, sounds like
it was'nt assembled correctly, I have'nt driven with it yet,
so it should be easy repair, just gaskets.
Thanks ; Rog