Hi,

The free wheel solenoid and hoses is a possibility, however you would normally experience partial engagement problems long before your C/D light began flashing. Of course if the solenoid has been failed for a long time but you haven't had need to use the 4WD system, this is likely to have gone unnoticed until it got this bad.

The C/D light not only shows you when your axles are locked, but it also functions as a "Check Engine" light of sorts for the 4WD system. Because the light is continuing to flash, we know a malfunction is being identified by the 4WD ecu.

So in order to get a repair plan in place, you are going to need to determine what codes are being set in the ecu so that the reported components can be checked, repaired, or replaced as necessary.

The system can be scanned by a MUTII or MUTIII scan tool (Mitsubishi factory scan tools). However, there is a built in self diagnosis available on most 2001-2003 models. To use it, you simply need to ground pin 1 of the OBD connector under the dash and the C/D light will flash the codes out to you. Also be aware that many generic scan tools will ground pin 1 when plugged in, so if you have a generic scan tool or code reader, you can try plugging it in and turning the key on and see if the C/D light begins flashing in sequence.

When pin 1 is grounded, the C/D light will flash the code in the following format: Long flashes for tens digits followed by short flashes for ones digits of the code. So for example if you had a code 12 and a code 23, it would flash one long flash followed by two short flashes (12) and then two long flashes followed by three short flashes (23). It will read all codes out then repeat indefinitely.

Once you have the code numbers you will have a better footing on what is going on and how to correct it.
I am attaching a list of the possible codes to be able to see what sensor/switch is in question by code number.
If you have any questions, please let me know.

No problem.

The OBD connector will be under the driver side of the dash, nearer the center console area.
I only have a left hand drive illustration available, but if you have right hand drive it will be nearly a mirror image of this. The pin #s of the connector are identified as well so you can see which pin to ground.

Hi Fenn and Darren.

Forgive the delay, as you caught me between shifts.

Glad to hear things are getting resolved. With relation to code #25, this is most common to be the sensor itself failing, however you will sometimes find that the sensor is soaked in oil if the seal on it fails, allowing transmission oil to get to the electrical portion of the connector (this is especially true on #2 as opposed to #24... #25 is a short circuit on the sensor/sensor circuit). Inspect the wiring for any issues first, and of course the sensor for fluid escaping. If nothing unusual is found, ideally we would want to check the signal with an oscilloscope to see what is going on there, however in all likelihood the sensor is just bad... it is not too uncommon.

The speed sensor is located on the tail housing just before the propeller shaft goes in. I do not have a good picture of this unfortunately, and our market did not receive manual transmissions, however on our auto boxes the sensor is near the top of the tail housing, pointing up and a bit to the right. On some years the tail housing was shared between auto and manual boxes, so it is likely the same, however it is not a sure thing. It will be several hours before I will be able to access my international database to verify, but it should not be that big of a deal... just look at the tail housing, it will be located on it, and it will be the absolute rear most sensor before the propeller shaft.