'99 Blazer LT, transmission troubles
 

Driving in to work tonight, I experienced some sluggishness rolling out of a stop sign. This was sudden onset, had not experienced this for the majority of the drive in.

When I shifted into park, I got a nasty grinding noise. I shifted into Reverse, but the trans didn't engage the Reverse gear. Shifting through all gears, it stays in neutral and I can move the vehicle by pushing it or pulling it.

I engaged the electronic 4WD, to see if I could get the transmission to engage just to limp it home. No go, but now the truck thinks its in 4hi. The "service 4WD" light is on the dash now. Will not shift, although I can move the shift lever. Going back into park, it grinds but does not engage.

I pulled the TCCM and it looked fine, no corrosion on the harness.
I'm thinking my Transfer Case Motor died on me.

Can anyone confirm?

I turned the key to ACC and shifted to neutral. The 4wd shifts to 4lo when I push the button, and after doing this a few times, I was able to get it back to 2hi, and the trans engages again. Is this a sign of a bad TC encoder motor?