I have a 1999 F250 v10. I replaced the transfer case 237F (cracked the housing) with a used one from an auto yard that I was told still worked, but when I mounted it onto the transmission, it will not shift into gears. I tried taking off the computer module and manually engaging it, but that did not work either, I even threw on my old computer module and that did not make a difference. I can feel the transmission shift through the gears, but it is not engaging the transfer case. When I go back to shift into park, it grinds so I end up turning the truck off in order to shift without grinding gears. Am I missing a step or do I more than likely have a bad transfer case? What do I need to do? Could it be because of low transmission fluid?

 

It almost sounds like it's stuck between hi range and lo range but I'm not sure how you would manually actuate it since I have no experience with them.

 

U have tried manually turning the the shifter arm with the transfer case motor off? U can manually shift them with putting an adjustable wrench on the arm and turning it. Will the truck move if u put it into drive or reverse? It sounds like you are in between gears as Tumbleweed1954 said. There is no "true" neutral on the 273....so i think u may be in between gears. U should be able to adjust it manually...before you manually move the shifter arm/knub, make sure your transmission is in neutral.....

 

I have had the exact same problem on my '99. The shifting fork in the transfer case has plastic shims taht ride against the gear journal. When these wear thin or come loose, the transfer case slips between 2H and 4H. Very frustrating. Youre going to have to split the case and replace the shims of swap the case back out for another. You need to shut the truck off in gear or neutral and then put it back to park to avoid the "grinding". youll see below the positions for the manual switching of ranges on the t-case with a 9/16 wrench (as I recall) . This can only be done with the removal of the range selecor assy from the t case. You can buy the plastic shims on EBAy, and probably at some other auto shops... I opted to swap out mine for a NP271 instead. Best of luck!