replace the transfer case shift control switch . there is a TSB # 02-04-21-004 released in april of 2002 , on your unit , you may also find a code # B2725 set in the body control module , fualt explination - fualt in transfer case shift control switch . GM part # 15709327 , also he is an excellent link on how to replace it yourself .
http://www.saltedwound.com/archives/2007/04/24/repair-service-4wd-light-on-2000-chevy-silverado/i know its a siverado but its the same process . that will fix ya !
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