For the transfer case issue - jack up both wheels on one side of the ex. Chock the two tires that are on the ground. With ignition on but engine not running, put 4WD switch in 4hi position. Verify that indicator lights up on dash. Put the transmission in Neutral. Now turn the rear wheel by hand. If front wheel turns (it will spin same direction) then you have verified that the mag clutch in the transfer case is good. If the front does not turn with the rear, then the mag clutch is bad, or the wiring to the clutch is bad. To check the wiring, the next step would be to look for voltage at the connector on the t/c. If present, then wiring is good and mag clutch is bad.