Not sure about any generational differences between your truck and mine, but what you describe is normal for mine.
It will bind up and will have some wheel hop when turning on dry pavement - always make sure that there is some ability for the tires to slip-n-grip when in 4WD.
1989 F150 XLT standard-cab shortbed 4x4, 5.0L, AOD, 3.55 gears, manual hubs, 31x10.50 tires, 218K miles. Repainted Oct09. SOLD - Jan2015
2014 F150 XLT standard-cab shortbed 4x4, 5.0L, 6-speed auto, 3.55 gears, auto hubs, locking diff, trailer pkg, 5K miles.