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1. Reset what code: The problem has not shown up with any type of “check engine” or “check 4wd” light. I rented a trouble code reader from my local auto parts store, but it did not show any error message. On another forum someone mentioned that a possible solution would be to pull the transfer case fuse and then reset the system by turning the key to the on position 4 or 5 times. When I do this, all of the lights engage upon startup, and then I the 2wd light turns on when the engine is turned on. Unfortunately, it has proven to be only a temporary fix. The light either fails while I am driving, or when I start the vehicle. When this happens, the light simply turns off – no flashing or other lights engage.
2. How do they fail: this can happen once I am driving, or when I turn the engine off and restart. Sometimes I can get it to light up if I press and hold the 2wd button, but normally only if I am in park or neutral.
3. Are there multiple lights on, light flashing code or continually? Which lights specifically? What about the service light? : Once the engine is started there is only one light on (i.e. 2wd, 4wd) or none at all.
Thanks for helping me with this - I am trying to do the repair myself, and need the 4wd to work reliably for the rest of the winter. When the lights are on, I am able to switch between drives, and can hear it switch into 4wlo, so I think the actually 4wd drive itself is functional. I hope this helps give you enough detail to think about what might be wrong. Let me know if I can give you more information.