Truck appears stuck in 4x4. Moving the selector from 2WD to 4WD or 4WD Low the lights on the dash continue to say "4X4 Low". Have tried unlocking and locking the hubs to no avail. Have noticed that when I go in reverse and let off the gas the transmission seems to grab and stops the truck very quickly.

Currently i have the hubs locked (just to be safe) and 2WD selected. Engine runs fine but the ride is rough, harder turning then when not in 2WD, doesn't coast well when off the gas, etc.

Where do I start diagnosing?