Check the shift fork in the front differential.

 

Will do....looks pretty easy to take off.....hopefully the cable isn't working down there and I can replace it, hope to get to it today or tomorrow.

 

The cable is connected down there with the same crappy little spring clip that you have up top. If when you remove the three bolt's to the plastic housing and it comes right off the clip has failed.

 

Well got it off.....it was still attached to the clip, got it off ok....the cable worked freely....I tried to pull in and out of the plunger type assembly that stuck out that the cable attached to but it wouldn't move....?.....I would think that it should...? Anyway it was dropping a little oil so I attached the cable, checked to see if it was attached, bolted it back in, attached cable back to the actuator and know the cable cannot be pulled in or out. So I'm guessing i got problems with that plunger thingy that goes into the axle....which looks like tearing into the front axle....which means I won't be having 4x4 anymore....lol...o well, I got over 150,000 miles on it, at least the engine is still going strong.