I have a 97 f150 4x4 esof with the 4.6l. My question is, is it possible to do away with this awful esof system and put a manual t-case in with manual hubs or am i basicaly stuck with a big 2wd truck?

 

I guess it probably could be done
I think it would be cheaper and easier to fix what you have

There are many good threads on here for diagnosing and
repairing these
good luck

 

Respectfully, you need to decide on learning how the system works so you become comfortable with it like anything else.
Knowledge is power for you.
The front axle assembly are CV axles that spline through the front bearing packs so no manual hubs are easily adaptable without something custom.
After this you may have just an much hassle over top of the expense of getting there..
101 on 4x4 is:
Switch signals the GEM module.
Module operates the transfer case motor.
Motor to position operates, turns an internal shaft engaging the case gearing and firewall solenoid to route vacuum to the locking actuator.
The firewall solenoids tells the module it 'thinks' the action is complete so the module lights the 4H or 4L light as feedback information.
The actuator slide locks a collar, locking the axles together since the transfer case is already engaged.
A little thought and checks made to see where the action stops or is hung up goes a long way to diagnosing the problem.
Good luck to you.