Check the electrical connectors to the transfer case. Some members have found water/corrosion inside, inhibiting the system from doing it's job.

Clean them out, and apply dielectric grease before plugging them back in, and you should *hopefully* be back in business!

"A young man who does not have what it takes to perform military service is not likely to have what it takes to make a living." - John F. Kennedy

Proud owner of an 88 Montero (with a blown engine).