Solve the electrical first, but when you get around to the lever, it's mechanical, (and as off-roader said, a seperate issue) so you'll need to take the center console out and fiddle around with it to figure out what's wrong. Easy to do, remove the transfer case shifter cover first, then two philips screws on each side of the center console near the bottom (underneath some plastic covers you'll need to pop off) then two black headed phillips screws near the top front. Pull off the lever caps. Pull out center console, taking care not to yank any wires loose. Nothing to be intimidated by. The lever may just need some grease on the sliding surfaces.