Your truck has a 4r70w automatic RWD
You need a 4r70w 4wd, consider upgrading to a 98+ 4r70w with the 98+ internal solenoids and wiring harness
Then you have a couple of t case options:
BW4406m
BW4406e
Ford NP205
I prefer the 4406m because it basically bolts in along with the correct front and rear driveshafts
You will have to replace your trans, or at least have your rwd trans converted to a 4wd trans using a new output shaft and tail housing (requires rebuild)
The 4406m is a 2wd, 4hi and 4lo case found in 97-04 F150
Your 96 Explorer is expecting to see a VSS sensor in the back of the transmission, now in the back of the T case
So you NEED to use a 97-98 F150 t case as they still have the VSS sensor
You have to cut a hole in the floor for the t case shifter and hook up the two lights in your dash for 4hi and 4 low
Have you tried searching for this? It has been covered!!
The 4x4 t case in a 5.0 Explorer is AWESOME!!
Back in 2006 I converted my 96 AWD explorer to the 4406m t case, added the VSS sensor, sorted out the driveshafts and hooked up the lights all right here in this thread:
410Fortune 96 AWD Ex - goes low range