littleRangerjoe: funny you should mention it. I have just finished reinstalling the A4LD in my 1993 Explorer after a repair job and it is doing something similar. It works fine for the first mile or two, then after it is warmed up, it acts like the brakes are on. It turns fairly easy in Drive, but when I shift it to reverse it acts like the brakes are on. When it is cold, it rolls normally in reverse. Shifts are all firm, not mushy. fluid is up. I have not taken it for a longer drive than about a mile from our place back and forth several times ( don't want to have to walk home :>) ) I have no clue!
Update: I readjusted the OD band, turning it out to 3.5 turns (I had done only 2 turns based on Glacier991 suggestion). After driving it still binds up so I readjusted the intermediate band too. Still binds after a short drive. I notice it pulling like a brake is hanging sometimes (kind of a surging-like an out-of-true brake), but when I jack it up, the wheels turn freely by hand with minimal brake drag noise.
Update2: This problem persisted until I pulled the front wheels off while things were still hot. I found that the front calipers were apparently hanging up. I used a C-clamp to release them and put it back together - no problems since.