Ford Repair Questions? Ask a Mechanic for Answers ASAP
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I would start by checking the codes in the 4wd control module. I would think there will be a clue in there (if it will even communicate) If not then the module itself is probably bad (which I suspect)
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Its under the center console. Once you pull the console unplug it, unbolt it, bolt in the new one and plug it back in. Its not that hard if you are able to pull the console without breaking stuff.
The module connector is listed on the attached diagram. That should help you to locate it.
It doesnt have to be. You are best off going to an independant shop and getting quotes on a used unit. Theres plenty of good ones sitting in salvage yards and I bet you could get the whole job done for 6 or 7 hundred at an independant with a used unit. If you give me your zip code I can see if I can locate a used one in your area.