Quote:

Well, I'm bring this one back up just in case there are any more ideas. The transfer case still doesn't lock into 4wd. The indicator just flashes. Ive had it "looked" at by a couple of people, but so far no one has been able to find the issue. Heading into winter, I still would love to know if by default the vehicle remains in AWD mode, of if it has turned into a 2wd vehicle. Is there any way to tell? Im hesitant about taking it to a dealer, as im sure the bill there would be $1k. I suppose if I cant get the issue resolved, there's no point in keeping it. It was bought for the 4wd capability, and if it's gonna cost major money to diagnose/fix, I may as well sell it and start "fresh."

Thanks.

I just redid the transfer case on my 2003. The cases are different but not by much. The motor that switches from AWD to 4WD Lock also has the sensor switches that send back to the computer that it did its thing and switched. Either the motor did not have enough torque to switch it or the switch did not detect that it did switch. OR and this is what I think happened, the wiring harness has been damaged by heat. That harness is very close to the exhaust, at least it is in mine. Idling will get the entire exhaust system including the cat converter to the highest temperature possible especially if you are running a little rich.
As for your worries about going into 2 wheel drive, that is virtually impossible unless the chain in the transfer case has broken or the front drive shaft is missing. If either has happened, the car will not move since it is not going into 4WD lock. I had a drive shaft issue and no parts to repair it so I dropped it. Put it into 4WD lock and got it home.
Craig

2014 Ram 1500 Laramie, 73 Cuda
Previous mopars: 62 Valiant, 65 Fury III, 68 Fury III, 72 Satellite, 74 Satellite, 89 Acclaim, 98 Caravan, 2003 Durango
Only previous Non-Mopar: Schwinn Tornado