Service 4WD Light - Turns out it's a sensor
 

But which sensor? According to my buddy who ran it through his tool, it read:

4WD intermittent sensor drivetrain transfer case

Any idea what this is or where to find it online?

Sorry but you need to ask the person with the scan tool that gave the info. Without a trouble code, it sounds like bogus info to me. Note that very few scan tools other than the Tech2 will connect to the TCCM to read 4WD codes.

Sounds like a 4 button, auto transfer case. If so, there are only 2 sensors: Vehicle speed sensor, and the transfer case shifter position sensor, (which is part of the encoder motor).

Yeah he had a tech 2 I think. He didn't give me the code though, said there wasn't one or some ****. Huh...

If the AWD light came on, there is a code in memory. Any Snap On Solus, Solus Pro, or Solus Ultra, can access the TCCM, and they are all bidirectional units. Those scanners are affordable, and very common in independent shops. Ebay usually has decent used ones, with current software updates, starting around $2K. Annual updates alone are $1K. Check around with some local shops and see if they use one of those.