I don't think it's gotta be a gem issue, because I can still go in 4h and low but when I go to 2wd it goes in 2wd but it's jerky like it's in 4lo, and the front drive shaft is still locked in.

 

Does then actuator on the front diff move? How about the shift motor on transfer case?

 

What if you take off the front drive shaft?

When you say it's jerky like it's in 4 low, does the truck its self act like it's in 4 low? Or is it just 2 high with a lot of extra torque like you leave it in 2nd gear?

 

shift motor moves

 

actuator would barely twitch, red hose suppose to not have vacuum?

 

still jerky with no front shaft

 

Unplug the vacuum lines from the shift motor and push the rod to the 2wd position. If it still keeps the front locked in then something is screwy with you shift fork or collar.

 

When did you put the new transfer case in? I don't know what's wrong but from another thread is there any chance your truck isn't programmed for this transfer case? From what I gathered from the other thread was parts from different years and models may physically swap with each other but the programming needs to be updated to match the new part.

I have no idea if this applies to your problem or not. Just a thought.

 

I think all '97-'03 F-150 transfer cases are Borg Warner 4406. He might have put a manual one in when it should have been an electric one? I don't know if that's possible.

 

Red Ford,

I didn't even think about that.

In 97 the 1356 was on some F150's and on 03 the 4416 was put on some 150's.

Some are direct swaps and some aren't. A 99 motored case can be replaced with a 99 or newer manual but a pre 99 manual is not a direct swap. I don't know the nuances of the difference.

There are a number of versions of the 4406 with different motors and transmissions on the 150, and it was also on the F250. There can be problems with the 4WD shift module matching the truck to case though.

Nothing was said by the poster about the truck.