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I put it in neutral then switch to 4L (while stopped of course) then I put it in drive - I hear the transfercase zip into Low (and feel the lower gear diference) and while on dirt or mud, only the rear wheels will spin. Same goes for 4H. Only in 4H, I can be driving at regular speeds. I first...

Not engaging - the front wheels never lock into 4wd. Where is this "clutch coil" located? is it on the transfer case?

Dont confuse this with a 95 which has a Vacuum Solenoid on the font axle - I have a 97 - when I switch to 4H (electronic) or 4L the transfer case engages but the front wheels dont. (example - I put it in 4L and it goes into Low Gear, but the front wheels dont lock). I thought it might be the...

For what it might be worth - Look for a round Vacuum Solenoid on the fron axle next to the passenger side wheel (in the front of course). It disconnects from the axle with 4 bolts I believe. It is what slides the gears over to engage the hubs. Might be your problem. You can get one at a parts...