2000 Chevy Silverado Z71 4x4 - Transfer case wont shift into 2wd?

Edgar

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No prior history of this problem. I went to drive the truck, put it in DRIVE and it didnt move. I shifted it back into PARK and it made a light grinding noise in the transmission. I did all this while the truck displayed a solid amber light next to the 2wd button on dash. I selected the 4hi button and it lightly clunked (normal) into 4hi, and when shifted into DRIVE it drove normal. When 2wd was selected it didnt lightly clunk and it didnt move when put into DRIVE. I suspected a faulty transfer case actuator, so I removed it and will probably manually rotate the shaft on transfer case to try and get it to go into 2wd.
note: i always have the trans in NEUTRAL before changing between 2wd, 4hi, and 4lo
possible cause of problem: someone borrowed my truck and might have changed between 2wd, 4hi, and 4lo while being in PARK, DRIVE, or REVERSE.
 
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