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Before you get too excited replacing stuff---are you sure that the transfer case is whats not engaging and not the front diff??? The reason I mention this is that I had a similar problem but the transfer case was shifting. The problem was a vacuum hose to the relays on the firewall had corroded thru just under the battery--apparently from long term exposure to the fumes or something. This kept the front diff from engaging as it is controlled by vacuum. Anyway a 4" piece of hose fixed the problem.
Yes, I would do a little more investigating before replacing.
Mine 'broke' last year. And I was told to get under it, and on the shift motor, there is a rubber boot that covers the mechanism that actually moves, to keep road crap out of it. Pull that boot back and spray the snot out of it with PB Blaster, and try and pry on it a little bit, and do this for a couple of days. Mine was just corroded, and it finally broke loose, and has worked fine ever since. You also need to make sure that every week you engage your system, even when you don't need it. You want to make sure that mechanism always gets the chance to move.
And how did you get from a shift motor to a TCase? If it is your Tcase, you are no longer talking about a 100 repair.
I was guessing that since it was not engaging the front wheels that the problem was either the T-case or the T-case shift motor. Since all works well in 2hi I'm guessing the shift motor or as mebush said perhaps a hose or something. (thanks for that suggestion mebush I will check it.) Also no indicator lights work on the dash when I move the switch from 2h to 4h or 4l. I know the 4X4 indicator light works as it lights up when I put the key in and all the lights do their diagnostic thing.
So, if my transfer case won't go into anything other than 2WD and AWD, then more than likely my issue is also with the motor on the transfer case? I had a problem about a year ago with it when I put it in 4-Low, but it corrected itself after the vehicle was turned off for awhile.
Now today, my brother and dad were using it and put it into 4-Low for a little while doing some stuff, and then back into 2WD. Now it won't go into anything other than 2WD and AWD, and those are barely working with it slipping out of gears somewhat when driving. Also, it won't go into reverse at all. I'm thinking it is all the same issue with the transfer case not being able to go fully into any of the 4 different settings.
Can someone ease my mind and convince me that changing the motor will solve all these issues?