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The MLVW does not have any locking axles on it in the locking differential sense, if that was what you are getting at. It is undesirable to use a powered front axle on dry surfaces, ie. pavement. Keep the airshift lever in the "Out" position unless required, then move it to "In" position to engage the front axle to aid in traction. The shift can be done at any speed, but I would personally try to keep that speed lower than highway speed, unless I felt it absolutely necessary - like in an emergency....do you no if there is a full lock for the traction...
If you are referring to the "High Range" and "Low Range" Transfer case lever on the tranny tunnel, it has three positions clearly felt when adjusted properly. Full down is Low Range - used in poor road conditions or adverse cross country terrain. Full up is High Range - used for "normal" driving conditions where most on road driving takes place. The center position is for unlocking the Transfer case from the rest of the powertrain. If your MLVW has the modification for this lever, ie. the locking plate and pin on the tunnel cover - use it to keep the lever from being moved out of the selected position....how do we use the hi- lo shifter...