The front diff has an ADD disconnect on it. It is normally disconnected so the front axle shafts are not turning. When you shift the transfer case to 4wd it throws a switch which triggers a solenoid and a vacuum valve to send vacuum to the ADD to connect it. The 4wd light is controlled by a switch on the ADD when it connects. You have a vacuum canister and some hoses. Check the hoses and make sure you have vacuum. May be hose rotted off. If vac ok - check switch, solenoid and valve to see if vac is getting switched. Trace the whole ADD control system. the ADD is a habernacle on the side of the diff housing.
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