I recommend towing with OD off. I have a 00 Grand Cherokee and towed a motorcycle trailer (about 2700lbs with bikes). There is a non metal (poor design) check valve in the transmission cooler lines that can melt shut if the trans gets too hot. That means no aux cooling and trans trouble. You will use more gas, but save a transmission repair. I also recommend synthetic trans fluid and rear diff lube. If you change rear diff oil, don't forget to add limited slip additive if not in the product you use. Both of these will provide a little extra margin of safety and peace of mind.
Bob
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