I have a 1998 Blazer LT 4dr 4x4 that has an odd issue. The 4x4 worked perfectly before, but I just got it back after having a rebuilt 4.3 dropped in it. I notice that sometimes when I'm driving the transfer case buttons are on (in 2wd only of course). However, sometimes there are non lit up. Once I was driving home from work, 1/3 the way home the light was on, the next 1/3 it was off, and the final 1/3 it was back on again. I've tried turing the lights on and off and that does nothing.

What I've found out is that if I either park it or put it in neutral if I hit 4hi it will light up after a couple of tries, then I can put it in 2hi with no problem. I hear it making noise but I'm not sure if that is the transfer case or the front axel engaging.

Any help is greatly appreciated!