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Hummmm,

When I had that problem I just used the ford wrench to fix the problem. I got under the truck and hit the motor that switched the transfer case while another pressed the 4X4 button. I could hear the motor start to move a bit. Kept doing this (smaking the motor whilw it was attempting to...

The fluid leaked out of my trans and killed it. Only 4th gear. Anybody have experience in rebuilding this unit. Special measurements/settings/tools? My only trans experience is doing the THM200-4R, a 4 speed automatic overdrive GM trans. That was not too hard to do. TIA,

WOW! That really stinks. Even at 99.99% Ford makes so many vehicles that there are gonna be some defects that pass through - they should take care of those few serious problems. IMO you should escalate the issue as it is only a few thousand miles out of warrantee.