Hey Ford fans. I keep having the same problem with my transfer case. Also I don't have a shift **** so i'm not sure of the shift pattern) It will shift from 2H to 4L or Neutral (All the way forward[4L?]or forward once[N?]) without any problem but it doesn't want to engage back in 2H or 4L after that. (One from all the way back[2H?] or all the way back[4L?]) I don't know what manner of fudging around with it gets it back into 2H but it works eventually somehow... and then the 2H works just fine. I haven't tried 4L yet. Anyone had this problem??

 

with the 205 all the way forward should be 4L - N - 2H - 4H. you should come to a complete stop to engage 4L. I have had at times needed to bump the throttle to get from 4h to 2h. the 205 is a gear driven case. is it topped off with gear oil? you might drain and refill if its been awhile.

 

With a 35 year old vehicle sometimes it just takes a lil patience. Mine is hard to get out of 4wd sometimes but if you put it in reverse and just ease a lil pressure off drivetrain it usually goes right back into 2 wd.

 

Some penetrating oil on the shift rails exposed on front of transfer case might be a good idea, years of rust and dirt will ruin the seals fairly quick.