Holy cow you guys. :roll:
Just to add more to this: My 86 owner's manual says that command trac vehicles require "minor transfercase modifications" before recreational (flat) towing. This would apply to the NP-207 t-case. It doesn't say what the mods are, only that you should go see the dealership about it.
After you've done those mods, the procedure for preparing for flat towing is (I've summed it up in places):
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1-With the vehicle moving slowly, shift the trans into neutral.
2-Shift the transfer case into the neutral position
3-turn off the ignition key
4-shift the trans back into park/gear
5-attach towbar
NOTE: Stop every 200 miles, and with the transfercase still in Neutral, start the engine and put the trans into drive and operate at a fast idle in order to circulate oil in the transfercase.
And the part I found most interesting:
If the vehicle is to be towed with just the front or rear tires off the ground, the speed should be limited to 30 mph and for no more than 15 miles. Then it says to shift the trans into gear and the t-case into neutral to do that.
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It goes on for a few more pages and has drawings and everything. :D I'd be interested in what the later year owners manuals state for the NP-231.