I have the same issue on my 05 XLT V6, Brought it to my local Ford Dealership.

Service advisor took it and had a mechanic look at it. He calls me at work and says my exciter (toner) ring is cracked. He advises me that it is 100% the problem.

So I'm like fine, if you say its 100% then do it.

$300 (had oil change done and bought new front brake hoses) later I pick up the escape and then 2 blocks down the street, the lights go back on and the 4WD is disconnected and I'm on FWD.....

I call the service advisor back and tell him that he said it would be fixed no matter what and he's like "I never said that" and basically said i'm out of luck and we should try replacing a sensor. (Not going back unless I get a sweet deal)

Like are these guys on commission?

I'll keep this thread posted on what happens.