Handbrake stuck on, Broken and jammed rear diff or damaged/faulty transfercase maybe.
With the rear wheels jacked up off the ground are you able to turn the wheels by hand?
If you cant, put the transfercase in neutral and try again. If the wheels now rotate fine by hand then the problem clearly isnt the rear diff or handbrake. [/QUOTE
With the wheels jacked up I can not turn the wheels by hand.
I remember that I hosed the car (also the wheels) down. Do you think it has something to do with it?