If it won't hold OD, it will simply downshift. I've been running mine in OD and it does fine on flats and some rolling hills. When you want to turn it off is when it starts hunting between drive and OD, locking and unlocking all the time.
Yes, it will scream. And mightily! Mine spends quite a bit of time at 3500-5000 towing my 8000 lbs. I have the 4.10 and 4spd and on steeper ascents, I'm down into low 1 at 4000 rpms. Usually the fan drive kicks in 100% when towing in the hot summer and that really makes the passengers look around. 116000 miles and feels like new.