My fathers did this, except his light would flash 10 times, wait 2 mins then flash 10 times agian over and over.
chances are its the 4x4 control module (CM)
Its a module about 4"x4"x1" behind the glove box.
And in 02 it was a very common problem (dads is a 02 too)
If you search for 4x4 control module here you'll find lots of posts.
even seach for 4x4 light flashing
Contact direct ford parts
http://www.directfordparts.com/partlocator/index.cfm?siteid=214290
they have the cheapest parts around. and I found customer service to be great too.
If I were you I would disconnect the module now as you never know when it will engage 4x4. maybe it wont but you dont know.
Using your VIN direct ford parts can supply a new updated version which should correct the problem.
After replacing the module on my fathers 02, the problem was resolved.
On a side note, I did find here on this board that some who had this problem found a ground wire loose on the shift motor for the transfercase. We checked my dads and his was fine. Give that yours is an 02, my money is on the module.