Your linkage may have come disconnected from the shifter to the transfer case. There is a TSB (Technical Service Bulletin) for this concern I will include it below.
GROUP: Transfer Case
DATE: Nov. 19, 1999
Loss Of Gear Range Selection Due To A Loose Transfer Case Shifter Lever Grommet
This bulletin involves the replacement of a grommet on the transfer case lower shifter lever.
2000 (AN) Dakota
2000 (DN) Durango
NOTE :THIS BULLETIN APPLIES TO VEHICLES EQUIPPED WITH FOUR WHEEL DRIVE (NV-231 AND NV-242) AND BUILT PRIOR TO SEPTEMBER 16, 1999 (MDH 0916XX).
The vehicle operator may experience a condition where the transfer case can not be shifted into high or low range.
This condition may have resulted from an incorrect shift procedure, where a low range transfer case shift is attempted when the vehicle is not in motion (a static shift). The incorrect shift, into or out of low range, may force the transfer case lower shifter lever grommet to come loose from the transfer case shifter.
Inspect the transfer case shifter linkage. If the trunnion has come loose from the grommet in the transfer case lower shifter lever, then perform the Repair Procedure.
1 05017960AA Grommet, Transfer Case Lower Shifter Lever
|1.||Raise and support the vehicle. |
|2.||Note how the original transfer case lower shifter lever grommet is positioned. |
|3.||Remove the original lower shifter lever grommet from the shift linkage trunnion. |
|4.||Install the new grommet (p/n 05017960AA) into its hole in the transfer case lower shifter lever. The technician may find installing the grommet easier if the flat end (not the tapered end) of the grommet is installed first.|
|5.||Loosen the shift rod lock bolt at the trunnion. Be sure the rod does not bind in the trunnion (Figure 1). |
|6.||Verify that the transfer case shift lever is in the 2H detent position. The 2H detent position on the transfer case shift arm is the second position from full forward.|
|7.||Align the adjustment location hole on the lower shifter lever with the adjustment channel on the shifter bracket assembly (Figure 2). |
|8.||Insert an appropriately sized pin through the adjustment channel and through the locating hole to hold the shifter in the correct position. |
|9.||Tighten the shift rod lock bolt to 10 Nm (90 in. lbs.) torque. |
|10.||Remove the locating pin from the adjustment channel and locating hole. |
|11.||Check the shift linkage for proper operation in all ranges.|