it was in 2wd but the vacuum lines were broken. I have it all together now and I got the 4wd hubs to unlock! I tried it in the mud by our house, I had the kid watch to make sure. It started out in 4wd but then I switched it to 4 low, spun the tires a bit then switched it to 2 wd. It worked, It is all back in working order now.
BTW how do you put gear oil in the transfer case? I drained it to see if there was metal in there, there was none but I have to refill it and the manual doesnt really show how.