The NP242 uses a viscous coupling that the NP231 didn't have.
4wd part time means that you can only use it "part of the time". It locks the front and rear drive shafts together.
Basically when you use 4hi or 4lo part time, if you turn the steering wheel on dry pavement, you'll destroy the front differential and or the transfer case because the inner wheel while turning will move at the same speed as the outer wheel causing it to bind. If there's enough traction between that tire and the road, you'll break something.
4wd full time on the NP242 sends most of the power to the rear wheels but can send some of the power to the front wheels. The front and rear drive shafts are not locked together, which allow you to run it on dry pavement because the transfer case allows the front wheels to move at a different speed than the rear wheels.