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Most often this is caused by either faulty switch or encoder motor on the transfer case itself Check for trouble code 2. Jumper pins 4 and 13 at the Data Link Connector Count flashes of the Four Wheel Drive 4WD shift indicator Light Emitting Diode LED's. Look for a code 2 that would indicate an encoder circuit failure. Clear the code, remove B+ from the Transfer Case Control Module TCCM for 1 minute, pull the CTSY fuse. Test encoder switch voltages at pins D4, D5, D6 and D7 of the TCCM. Should have 0, 0, 5, 5 volts in order when in 4LO. Should have 0, 5, 0, 0 volts in order when in 2HI.
I'm the type that knows how to check the oil. I can check what you mentioned but I'm afraid its a bit technical for me. can you walk me through it in simple terms?
I live out in the country and the nearest auto zone is about 45 miles away. Any other possible idea's?