Wucko - check "Alfredo C"s comments and picture on the Dr. Bob page under
Dead Link Removed
The white wheel with the printed circuit he makes reference to (below the connector in the photo) is the sensor, along with the other two parts immediately left of it. He says the part was separated, which was a problem, and he had to repair it somehow... I don't remember that being a problem in mine. Also, do you have the rubber stop around the peg on the gear (the peg is at about 5 O'Clock on the gear in his picture).
If you take the sensor apart, be sure to scribe everything first - it's important to line everything back up upon reassembly. I believe the sensor detects the position of the transfer case cam. I cleaned the "printed circuit" and the five little contacts with contact cleaner, and made sure that they weren't bent down so that they'd have good contact with the printed circuit. Apparently various combinations of continuity from those five contacts against the printed circuit let the sensor know where the motor/transfer case cam is pointing.
From the second picture, the motor should rotate the lever 90 degrees going from 2H to 4H, and another 180 degrees to 4L. Does your motor move this much when you have it's unbolted from the Tcase? How about if you hold it up like it's bolted to the case? does it still move?