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Thank you for trusting us with your questions. Is there someone else there that can help you look at some things? What I need to know is, with it in gear, does the front driveline turn as the truck moves forward or reverse?
Ok, well, heres something to try. Use a wood block or rubber hammer and tap on the actuator on the transfer case. Then try shifting it in and out of 4wd high and low. Basically, you need to get it out of the neutral position and engaged, then there may be more we can do. Ive never seen one get stuck in that position before. Usually, they get stuck in 4wd position.
This sounds like its going to be more complicated than just a simple fix. Probably will need some diagnostic tools to get to the bottom of it. Is there anything you have available to you right now?