The tranny doesn't have to know whether it's in 4WD or not. It only needs to know whether it's in low range. So a simple SPST switch, similar to a reverse light switch on a manual transmission, suffices. So one of those wires probably comes from a 12V power source, and when you ground it, it'll probably blow that fuse.

 

The tranny doesn't care about 4x4, but the switch on the TC still needs to turn on the indicator light. 12v goes to one side of each indicator light, and the other side of each light is connected to one of the two wires on the TC switch. The switch grounds each of the wires as needed, completing the circuit. The PCM connects to the low range wire between the light and the switch.

 

You were right just two ground wires. One turns on the 4x4 light and the other turns on the Low Range light. Being that it sometimes works I oiled the crap out of the switch put it back in and it works like a charm. It also shifts correctly in low range.
Thanks for all the help. RB

 

You were right just two ground wires. One turns on the 4x4 light and the other turns on the Low Range light. Being that it sometimes works I oiled the crap out of the switch put it back in and it works like a charm. It also shifts correctly in low range.
Thanks for all the help. RB