That's a great explanation of the Gen II Explorer's Control Trac system, but the Gen III gets even more complicated when in 4x4 Auto. They have a certain amount of "intelligent" or "predictive" action to them...For example, if you spin the tires in gravel when taking off out of a driveway and it engages the front axle, the system now knows that there may be a condition where additional traction is necessary, so even on dry pavement, it will engage the front end again if the throttle is opened beyond a pre-determined point. It will stay in this mode for several miles (10+) of driving in a no-wheelspin condition before it resets back to normal operation, or it can be reset if the key is turned off and restarted, or if 4x4 High is selected and then 4x4 Auto is selected again while driving with no wheelspin.
First time this happened to me, I was freaked out that all of a sudden I go to accelerate and the transfer case is engaging. It wasn't till I figured out how this system works that I got used to it.
When I got my PCM updated with all the current software versions not too long ago, I noticed that the 4x4 system now is not nearly as sensitive as it was at first. Now it seems to reset out of that "intelligent" mode much quicker all on its own. It now allows a little more wheelspin before engaging too. I can get a little chirp out of the tires on wet pavement before the transfer case engages, and I can't feel it engaging and disengaging at a certain throttle angle like I used to. Much improved if you ask me. I hated the way it was before, even though it was incredible in slippery weather. It was too much of an electronic "nanny" for my liking. I only like "idiot-proofing" to a certain degree before it just gets annoying.