Did try pulling the ABS fuse and testing before the testing below. No change.

Testing;

1. Opened line to rear brakes at end of steel line just before "T" block on rear axle housing. Attached rubber hose and ran it into a jar of brake fluid; started XJ and operated pedal. Had significant pedal resistance.

2. Opened rear line where it comes out of ABS pump. Attached rubber hose into jar of brake fluid. Still had significant pedal resistance.

3. Opened rear line coming out of proportioning valve where it enters ABS pump. Attached rubber hose int jar of fluid. Freed fluid flow & almost no pedal resistance.

Conclusion: ABS pump restricting flow to rear brakes. Bruggz351 says above that a member on the Aussie forum found the pickups too far from the tone ring on rear and the ABS was just doing its thing. That sounds like a problem diagnosed on an ABS system that has been working. The ABS on my rig hasn't worked since some time around 2001. I'm going to plumb around the ABS pump for the rear feed & move on....