Not sure about 203/205. Was thinking about the neutral thing..while obvious safety concerns can be raised, I think you could leave the PTO engaged and have the transfer case in 2hi, 4hi, etc. Your winch would never keep up if you started moving quickly though. Best to pull yourself out letting the winch do the work.
Once when I was a kid I hit the PTO knob in my dads truck. On the 75 mile ride home, we kept hearing this weird "ka-thunk" noise every once in awhile. I was so young I don't remember what happened, but I believe it snapped the pto drive shaft after about 50 miles. Winch is still on his truck and works fine though!
Dorian
My K5 and Chev/Olds tech/links page: <A target="_blank" HREF=http://www.dorianyeager.com/index2.html>http://www.dorianyeager.com/index2.html</A>