Ford quit making the Ranger in 2011. The code refers to the transfer case and the motor that engages the front drive shaft may be stuck or it may be the transfer case control module. You can try tapping on the motor on the transfer case to see if the contact plate is the problem.
SOURCE: 1989 Ford ranger rear antilock light on rear brakes lock up
metal particles on the trigger wheel sensor of the rear differential case, this causes a loose of signal and the light to come on. also a broken tooth on the trigger wheel inside the diff can cause this or a dirty/corroded connection to the sensor from water intrusion.
SOURCE: 95 FORD XLT RANGER FRONT DIFF REMOVAL
remove the shock (be careful shock mounting stud is welded to driver side axle tube and will sometimes break off) lower the axle tube (arm) bolt should come out from the top.
SOURCE: ford ranger reset button
it should be right behind the top edge of the lower cowl or trim kick panel under the dash on passenger side front inside the cab
SOURCE: I have a ford ranger 2.5 4x4 of 2007. The diff
When the light flashes it usually means it is set to engage, but hasn't done so yet. I would checking the wiring and piping at the differentials...one might have come loose.
SOURCE: putting a diff. cd player in my 1996 ford ranger.
click on this link,, and scroll down to locate your year, Fords are all the same,, this has your plug in with color codes and what they are for !! http://www.installdr.com/Harnesses/Ford-Wiring.asp
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