Pretty sure my encoder motor crapped out. Question...... There's only 3 postions in the transfer case? Ahead is 4x4 low, middle is neutral and back is 2x4 4x4 high? If this is the case... if I hooked a 12 volt source switch to the vac switch on the fire wall I should have in and out of 4x4 high?

 

The NV236 is a tricky transfer case. There is always some torque transmitted to the front output shaft even when in 2HI. When the transfer case is in Auto4wd, it applies more pressure on the clutch pack which transfers more power to the front axle up to a 50/50 split. 4HI is accomplished by fully applying the clutch pack. I haven't messed with one in a very long time and cannot remember the specific detent positions.

Concerning the front axle engagement solenoid, if you were to energize the solenoid, you would engage the front axle only, not the rest of the system.