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1996 explorer gets stuck in neutral after >35mph, ok in 4wd low

dt90gt

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OK,
So the truck is an eddie bauer 1996 auto 4wd. If I have the truck in 4wd low and drive around there are no issues, just can't go very fast.

If the truck is in 2wd or 4wd I can accelerate, up to any speed, but as soon as the truck starts to coast it will not re-engage into drive, so basically it sits in neutral and I have to slow down to a stop. I manually shift it while stopped to reverse, neutral, drive, 2, 1 and nothing will engage. Then I put it into park, and it makes some nice grinding noises, so I turn the truck off. Turn it back on and it will shift into any gear and I drive away.

If while driving in 2wd or 4wd I have one foot on the brake I can cruise at whatever speed, as long as there is consistent pressure on the gas to keep it attempting to accelerate. As soon as I release the pressure and let to truck coast, it will not go back into gear to accelerate when I press the gas.

Ideas?
 




dt90gt

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We already replaced the transfer case once, and I am wondering if it could have failed again?
 




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