And the 208 has no clutches or other provision for slippage? In other words the front and rear outputs must both turn at the same rate or something breaks, right?
Pretty much, yes. That is why in general, you do not use 4hi on dry pavement.
If the tires are exactly the same size, you might get away with it for a short distance, for instance pulling up a boat ramp, but things get really tight if you try to make a turn on dry pavement, since each wheel is going a different distance.
If you are on a surface that will allow slip, such as dirt, mud or snow, 4hi is fine.
Running different sized tires front and rear is not recommended.
With auto hubs, you usually can Not shift on the fly. Transfer cases that allow that, have what amounts to synchronizers that spin up the front drive-shaft before it goes into gear.
With manual hubs, if they are engaged, and the wheels are not slipping, then the front and rear driveshafts are turning at the same or almost the same speed.
On my truck, which has a 205 transfer case with no clutches or synchronizers, I can drop into 4hi at 60 with the hubs engaged.
But I don't recommend driving that fast in 4hi except for special circumstances.
Now, if you have a truck like a lot of folks here have, that has been overbuilt to extreme, you can run on dry pavement in 4hi and the system is so strong that it forces the tires to slip on the pavement.
But, even with the build these folks have, its still a strain.