It should give more traction. My thinking is that one of you CVs is blown so that you don't have any front wheel drive. If you can try doing a doughnut in 4lo, if the rear spins out you have a problem in the front end somewhere. Since the front is an open diff all the power goes to the path of least resistance. Since the TOD only reads prop speed it doesn't know what the wheels are doing only what is happening at the output flange.
Scott