Welcome to the Herd; lots of friendly knowledgable folk in these forums!
2WHi~4WHi~4WLo Selector in dash center panel is likely NOT problem; just simple resistors; never fails.
The 2 common NotoriousFailureItems\NFIs for this BorgWarner#1354 4x4TransferCase are
* 4x4ControlMod mounted behind right side KickPanel
* 4x4ShiftMotor mounted on the backside of the 1354 TCase, below the DriversDoor\Seat
Best way to test which of these 2 is the likely failed item:
* Park on level ground where you've got access to crawl under DriversDoor\Seat; set EBrake.
* Use Jacks+Stands+WheelBlocks to raise vehicle & make safe as needed.
* Crawl under & remove 4x4ShiftMotor, 4 Bolts; leave Motor plugged into electrical harness
* Have a Buddy\Wife\GirlFriend get in DriversSeat & start Engin
* Have them put foot on BrakePedal, put Shift into Neutral
* You visually note how ShiftMotor mates with TransferCase TriangleStem & the 3 engraved positions.
* As you watch ShiftMotor output, have them slowly operate Selector 2WHi~4WHi~4WLo & back.
If ShiftMotor does rotate properly, then ShiftMotor is likely getting weak & failing.
If ShiftMotor does NOT rotate, then 4x4ControlMod is likely the failed item.
Explorers\Rangers\B4000s\.... used differing incompatible versions of ConMod+ShiftMotor
for years before 2001 & after 2005; so be sure to buy the appropriate 2001~2005 version.
If not done in the last 33kMiles\4Years,
now is a good time to drain+renew the Mercon\MerconLV (not MerconV) in the TransferCase.
Click here for more info on this TransferCase & Controls.
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