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I have a 2002 Explorer 4x4, Auto, V-6 etc..
This is the first 4x4 ive owned like this.. The 4x4 light flashes
on and off going down the road sometimes..
It also makes some noises when i turn sometimes..
Ive also noticed in parking lots if the pavement is wet its harder to turn
at times..
The same exact thing happened to me when I bought my '02 XLT last year. 2 weeks after having it, the 4x4 light started flashing on my way home from work.
No big problem until I went to make a sharp turn and it felt like the driveline was binding very badly and making all kinds of noise. It seemed stuck in 4x4.
I was still under warranty so I took it in. The dealer replaced the 4X4 module. No problems since.
I would not drive it that way for long. Get it fixed before something breaks.
Disconnect battery to reset 4x4. After you reconnect batter then pull #12 fuse (shift module) it will keep the truck from shifting into 4x4 until you get it fixed. You will destroy your differentials if you keep driving it in 4x4. Thats how I have mine till I can get it fixed.