Can transfer case be the culprit for tranny not shifting?

[95cherokee33s]

I have a 95 ford eplorer, and the transmission has been rebuilt. The transmission will not shift. I took it to the tranny shop, and they said it is something in the transfer case that detects speed and tells the tranny when to shift. Just wanted to see if this was true before I replaced the transfer case. Thanks

 

[drx]

it could be a simple sensor problem! run a diagnostic check on it, see what errors it gives you