95 K2500 Suburban 7.4L, Transfer case stuck in 4LO
 

Hello all,

First post for me here, but not new to wrenching or forums.

I recently picked up a 1995 Chevy K2500 Suburban, 7.4L engine, 4L80E transmission, floor shift NP241C transfer case. I bought this as a new project vehicle, the bug finally caught me again. I knew it was "stuck" in 4LO at the time of purchase, it was a short, slow 3 mile drive home after I disconnected the front drive shaft.

Anyways, onto the first problem I need some advice on.

The T-case is physically stuck in 4LO, the floor shifter moves through the ranges, 4LO, N, 2HI, 4HI, but the T-case will not disengage from 4LO. The 4x4 indicator lights next to the floor shifter do not come on, the front axle does not engage. I checked all fuses and they are in good shape, I drained the T-case, which was low on fluid, replaced with Dexron III equivalent fluid to proper level and still stuck.

Now, weird thing is, when the T-case lever is in 4LO, trans shifts normal, when it's in N, trans still goes into gear, but trans will not shift out of first, same for 2HI and 4HI. I'm kind of stumped, anything else I can check before I go dropping the T-case? I have a replacement T-case on the way and plan on replacing all sensors on the T-case and trans.

Any ideas or advice is greatly appreciated.