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If it the same set-up they have had for years it soiunds like the 4x4 actualtor is shot.
It is a gas filled piece. When you put it in 4x4 it heatrs the gas and the plunger is pushed out engaging the 4wd. When the seal goes the gas leaks out and the plunger can not move.
It would make sense that there are no lights becasue it is not actually engaging.
This of course is only if gm is still using the same system.
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1996 F-250 extended cab long box five speed. Home made Tymar, 203 Stat, 60 gal in bed fuel cell, 315/75's, no muffler, ebpv welded open 3" to 3" DP, Babies. 290K, still chugging, and still smoking when cold.
UPDATED 8/1/08 Replace so far. 1 LUK flywheel+clutch, 2 thermostats, 2 set of brakes, 1 set of calipers, 5 CPS, 3 sets of tires, 2 Transfer pumps, 1 Injector modual, 1 Computer, 2 Alt, 2 sets of batteries, 1 Water pump, 6 Belts, 1 PS hose, 2 Sets ball joints, 2 set u-joints, 2 carrier bearing, 2 Speed sensors, 1 oil pres sender, 1 temp sender, 4 sets of e-break cables, 1 front fuel tank, 2 rear fuel tanks, 2 set of glow plugs, 6 Glow plug relays, Oil galley o-rings, Turbo pedistal o-rings, EBPV o-rings, 3 sets of Injector O-rings, 1 Vac-pump, 1 new carpet.Total $$$ in repairs v/s miles driven = 3.0 cents per mile. Add fuel to that it jumps to 14.8 cents per mile over the life of the truck.
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