Wouldn't you know after I post I finally find some information on this. Obviously I mis-spoke (typed). It is the transfer case position indicator light that is showing it is in neutral. Last weekend I could simply press the 2HI button and that light would blink and then remain lit. Last night, the light would not come out of neutral. The 2HI button would flash for about 20 seconds while the neutral light was still lit. The 2HI would then stop flashing again indicating that the transfer case was in neutral. I shut the truck off for a few minutes, started it back up and the 2HI indicator light was on. Again tonight, it switched to neutral. The truck has always driven fine with this condition. It hasn't felt like it ever moved out of 2HI and of course has definitely not gone into neutral. I have not had any DIC warnings. I have not tried to switch it into 4HI as I'm concerned that it may not shift back out.
I have read that the transfer case encoder motor is a common problem with these vehicles. Is this possibly a beginning sign that problems are on the way with the encoder motor? I have also read about possibly bad grounds, bad connections, pulling fuses, etc. But I haven't come across the specific problem that I'm having - everything has been actual performance problems.
Any recommendations?
Thanks.
Tim