97 thaoe transfer case issue

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camaro1252

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so my transmission died front pump went out. we removed transmission and installed a used tranny. Cleaned all dirt off old transfer case and put it back in. Once got everything ready we started the vehicle and toped off tranny fluids as well as trnsfer case. After getting all ready noticed that the 4 low light was blinking on 4wd switch. and put it in neutral and tried to go to 2wd and it just blinked and then lit back up and flashing in 4 low. Switch ignition off and the encoder motor on transfer case starts cycling back and fourth. Needless to say im lost as what to do next. i did use pin 13 to get codes and it gives me code 1 and code 2 installed new encoder motor and still does same thing any info be greatly appreciated.
 

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