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The locker sensor (plunger) needs to be behind the plate on the side gear, ie: the plunger needs to be installed before the diff, and when the diff is installed they need to make sure the plunger is hooked over the plate. If you don't one of two things will happen, a/ it will lock correctly but the dash light will just flash as it doesn't know it's locked, or b/ the plunger may exert enough pressure on the side gear plate to engage the locker and it will be locked all the time.
 

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Specifically, they stay engaged. Apparently, a plunger needs to be set to a specific depth, but the specifics are not clear to me.
There is no specific depth, it just needs to be installed correctly. It definitely sounds like the plunger is pushing against the side gear plate and causing the locker to lock. It needs to be over the plate and is pulled out by the plate when the locker engages to tell the system it is locked. This is a common mistake.

Here's a quick diagram I did that shows the correct position of the plunger:
 

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BTW They will need to pull the diff to get the sensor plunger in the correct position. You can grind off a couple of threads of the sensor, use a match to hold it open, and with a little messing about get it over the plate with the diff in place, but seeing as it is their mistake I'd get them to do it properly and pull the diff out.

Give them the diagram above and explain that the plunger hooks over the side gear plate. I'm betting they have it so it is pushing against the side gear plate and causing the locker to lock.

A simple test is to remove the sensors and I'm betting your lockers will disengage.
 

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Apparently, they damaged the sensor in the process.
That's not unsual either, the shaft can easily get bent causing the plunger to no longer move.

They're supposed to have one in the morning. Pray for me that I have my Jeep for the weekend!
You can drive it without the senor in (as long as you blank the hole with a bolt (or cut the end off the broken sensor).
 

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So if you don't have the sensor the only complication is that the locker lights continually blink on the dash and button (I haven't seen it personally yet)? It doesn't throw the computer in a tissy fit and go into limp mode or anything?
Yup, the locker lights just flash, no codes. Do make sure you use something to blank off the hole in the diff though.
 

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anyone have a prt number for the plunger???
68003569AA

You can actually install them with the diff in place, but it's kind of a bodge. Grind the first 2 or 3 threads off the sensor, use a match to fully extend it. With the diff cover off pass it through the mounting hole, and use a long flat bladed screw driver to help it over the edge of the plate on the side gear. Recover the piece of match, and bolt it all back up and add the diff fluid. Not a perfect solution but it will get the job done.

If you have the time and inclination, just pull the diff and do it properly.
 

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Are you sure the lockers are not engaging? Obviously if the sensors are not installed correctly then the lights won't work properly, but the lockers could still be working.

You need to verify if the lockers are working or not.

If they are then the first thing I'd do is pull a diff cover off and shine a flash light right to where the sensor plunger is and see if it is in the correct position. If not they need to remove the diffs and set them up correctly.
 

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That said in reviewing the thread I am missing something. I installed the 'pin' after I installed the pinion assembly. Then I set the carrier in, checked the clearance by hand and gage to insure the ring gear would turn freely. I torqued it to 80 lbs on the straps and buttoned it up.
I don't ee the sensor in your pic, so presume it was added after. Was the end of the sensor over the plate on the side gear? It's possible to install the carrier and not get the end of the sensor hooked over the plate, especially if the carrier went in at a slight angle.

Pull the diff cover and take a look at the end of the senor and make sure it is over the plate on the side gear, you may need to use a flash light to see it.

If it is not, then pull the shafts, pull the carrier out a little and make sure then end of the senor gets hooked over the side gear plate, then bolt it all back up.
 

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Are you telling me the sensor cannot be replaced without pulling the carrier?
You can actually install them with the diff in place, but it's kind of a bodge. Grind the first 2 or 3 threads off the sensor, use a match to fully extend it. With the diff cover off pass it through the mounting hole, and use a long flat bladed screw driver to help it over the edge of the plate on the side gear. Recover the piece of match, and bolt it all back up and add the diff fluid. Not a perfect solution but it will get the job done.

If you have the time and inclination, just pull the diff and do it properly.
 
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