I'd pull up the boot, & take a good look & try it while looking for anything blocking the linkage. You may have to crawl under there to get a better look. Don't do this until everything cools down, or you'll find out quickly what stuff gets hot while you drive.
Linkage checked and all looks well. It goes into the appropriate gears but does not engage the front drive shaft. I can get 2x4, 4x4 nuetral and 4x4 low but all in 2wd. I'm thinking it may be the transfer case itself. Any help would be greatly appreciated.
Ok I disconnected the vacuum hoses from the transfer case and one out of the four hoses have a vacuum. I traced the lines back and the one with a vacuum lead to or around the manifold. Two of the lines lead to the shift motor located on the front axle and the third line at the moment leads no where ( the line just ends and is not connected to anything). I did notice that the line that did have a vacuum split off and connected to fuel line vacuum. I noticed that where it connected to the fuel line the rubber was worn so I temporarily fixed it with tape, and now engine is not running properly. She will idle for a while and just cut off.
actually, all my lines are broken, so i leave a plugged engine vacuum line tied to the side by the front axle and engage/disengage my front axles manually. poor idle could be a vacuum leak somewhere. i have plenty of those.