Long story short, I just purchased an 88 F-250, and the transmission went out. That has been rebuilt (split cost with seller), and now the shop says the Transfer case won't come out of low range. I went to take a look, and it shifts through all gears in the TC, but it stays in Low Range. The front Driveshaft engages when in 4x4 H or L, but not in 2H (as it should). No matter what posistion the lever is in, it stays in Low, even if the TC is in neutral, the truck will drive in Low Range. It wasn't doing this when I towed it in, but it is now. They are going to fix it (rebuild), and pay for the labor to Remove and Replace, but I have to pay for labor and parts on the rebuild. Is it possible something else is wrong? It is not the linkage, because even with it unhooked, and shifted manually on the side of the TC, it acts the same. Neither me or the shop knows how it could have happened, and I am going to be there when they open it up. What do you guys think it is? Ever heard of this before? I have not. Any help would be appreciated, thanks.

 

UPDATE:

We split the transfer case this morning. We immediatly noticed that there was a piece of the shift fork in the bottom of it. CRAP! What it appears happened is that the chain streched, and caught the piece of sheet metal on the oil pump between the gears. Then when it was tried to shift, the fork was unable to move the gears (jammed together) and broke the end off. Everything else looks very good, so all it needs is the oil pump, chain, and fork. Cheers.