<i>Could a bad TOT sensor cause these problems? Is that on the same grey/red wire? </i>

That's the tranny fluid temp sensor inside the transmission, shouldn't cause them problems. Really no way for it to effect it.

I see the gray/red wire runs to the MPLS, have you driven in water lately, just before the problem started perhaps? Has it been replaced that you know of? I see lots of problems here with that part. Especially before the 94 model year?

On the 4x4 light, do you have a manual shift or electronic shift transfer case?

I gotta go out for a while, I'll check back when I return and see how you're making out with it.
Plenty of knowledgeable help here in my absence anyway, didn't want you to think I just abandoned ya! lol