it seems to be pulling about 1/2" but lets say it isnt... what does that mean?

 

Could just be a sticky cable.

 

so i disconnected the cable from the bottom and the plunger wont come out. i pulled it as far as i could and put vice grips on it but still no 4wd. i priced a new front differential but before i buy that could it be anything with the transfer case? by the time i am done i will be able to diagnose any s10 or t10 4wd problem. lol.

 

If you cannot get the front axle to engage, then the problem is in the front axle. I doubt you need a new front axle. You should be able to pull the passenger side extension housing off and inspect the parts inside. It could be something as simple as a cable problem. Maybe the cable is disconnected at the front axle. Maybe the collar or shift fork has broken inside the front axle.