Job Finished - 4wd engaging perfectly. As follow up to my post above - I had about 5 hours in this job, not the 1 to 1-1/2 hours that seems to be the thread at Dr. Bob's page. I had to use a dremel tool with a cutoff wheel to "slot" those proprietary torx screws, then I was able to turn them out with a ratchet (to break them loose) then a screwdriver. Without that difficulty, it would probably take about 2 - 3 hours to do the whole job.
Since I wasn't sure exactly where my problem was, I addressed the motor and the position sensor/actuator itself. I disassembled the motor and cleaned the armature and the brushes, greased the end-caps, etc. I also disassembled the sensor/actuator and cleaned the contacts there, and I also found that the rubber stop in the actuator had deteriorated to nothing. Like others mention on Dr. Bob's page, a small piece of 5/16" fuel line seemed to work just fine as a fix.
Like everyone else, I'm assuming this will last quite a while. I wouldn't hesitate to do this job (except for those damned proprietary screws)as long as you take your time, mark the alignment everything so that you can easily reassemble, and don't fool yourself into thinking you can do a thorough job in too short a time.