what are the different 4WD shift selections used for and what should I keep it in for normal driving

It depends on the transfer case you have. 4WD full-time means that the 4WD is working all the time. This is typically used for driving in rough conditions -- snow, mud, water. Part-time is used when normal driving on roads that might have patchy rough spots -- ice, etc. 4WD Lo is used only in extreme conditions and you want to keep your speed under 35mph. 4WD neutral is used when flat-towing the vehicle -- it unlocks all the wheels from the differential. In newer vehicles you can use 4WD full-time for normal driving although your gas mileage will decrease.

My shifter has 4hi, N, 2wd, 4lo

4Hi- is used for driving in poor weather/road conditions ( snow,ice, mud, etc) 4Lo- would be used in an extreme condition , such as being stuck in deep snow/mud . The vehicle will be put into a low gear for added power to get unstuck. 2Wd-is for normal ,everyday driving, in good road conditions( dry roads) you will get the best fuel economy in this setting. N- is neutral , it puts the transfer case in neutral.

not too familiar with dakota but 2wd is the best on fuel and the easiest on road (turning corners etc) however 4hi is best for performance. Don't use 4lo unless you're off road.

You should almost always have it in 2wd, 4wd even 4 hi is not designed to be used on dry pavement

i agree with justin...

4wd 4wheel drive with 2wd dont get 4wd mixed up with awd. that shift pattern sound like its np/nv231.

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