From my Ford Dealer Installed Instruction:
Neutral Tow Instructions
To Shift The Transfer Case Into Neutral
1. Securely attach vehicle to the Towing Vehicle.
2. Start the Explorer Engine to make sure that the battery is sufficiently charged.
3. The Explorer must be at a complete stop and shifted into 4X4 AUTO.
4. Place the Automatic Shifter into neutral.
5. Turn the ignition switch (key) into the OFF position (e.g., steering NOT locked).
6. Neutral Tow Light will initially go through a bulb check; then turn OFF.
7. Depress the brake pedal and Press the 4X4 Auto button for 5 seconds.
8. The Neutral Tow Light will flash; then stay on to indicate the Transfer Case is in neutral
9. Leave the ignition switch (key) in the Off Position and the Transmission in Neutral while the Explorer is in tow.
Do Not Disconnect the Explorer before placing the Xfer Case into gear.
To shift the Transfer Case Out Of Neutral After Towing.
1. Make sure the Explorer is at a complete stop.
2. With the Brake Depressed, turn the ignition switch (key) to ON (not start) position, and moved the transmission shifter out of neutral.
3. The Neutral Tow Light will turn OFF to indicate the Transfer Case is out of Neutral and in Gear.
1997 Safari Serengeti M-4040 Cat 300 &
2002 Jetti TDI & 2004 Ford Explorer Limited V8 Toads