I've finally got my 74 f100 4x4 running! bad news though is that after I went for her first time offroad I cannot seem to find regular two wheel on the transfer case. I know that it should be there but can't for the life of me find it. There is an indicator light when it's in four wheel, out of it the light goes out.

The shift **** says
4 lo
loc

N

2 hi
loc.

 

The 203 is a full time 4x4 transfer case. There is no 2wd drive position.

 

The NP203 is a full time four wheel drive transfer case, it did not come with a two wheel drive position. I could have been converted.

The *** on the left is a 203 the *** on the right is a 205.
I could have a kit in it that made it part time.
Think link has the Ford 203 instructions half way down the page.
NP203 Part Time Conversion Kit
More here...Mile Marker NP203 Part Time Kit
I looks like you have the kit with that shift pattern.
I've never had one that was converted, hopefully someone else can chime in if this does not help.

 

Do you have lockouts on the hubs? if so, your 203 may have been converted to part-time, and 2Hi is the second position forward from the seat.

Or, maybe you just have the wrong shifter ****.

 

I have locking hubs, and my shifter doesn't look like either of them. Any why I could tell if it was converted from the outside?

 

I believe if your hubs are unlocked your truck will only move if the np203 has the conversion done, if the diff in the t-case is not coverted it will just spin your front driveshaft, lock the hubs and it should move.