Hey, mine's doing the same thing, but remained in 2wd. After awhile the light went out so I tried to **** it into 4wd Hi and it got stuck their like yours did. I was able to get it back into 2wd by removing and replacing the transfer case fuse, located in the box under the hood. This won't solve your problem but might get you back into 2wd.
"FREEDOM IS NOT FREE"
An Nasiriyah, Iraq