HELP!! 4HI 4LO Working .....AWD Not Working.
 

Hey all needing some help i got a 2003 Mitsubishi Montero sport that seems to not be fully engaging when shifted in AWD and its making a grinding noise like its slipping. What happens is while its in AWD you can accelerate and it will move forward and or in revers real slow and when you put it in park on an incline it will roll like its in neutral.
When i shift it into 4HI or 4LO it works fine just like its supposed to and the grinding noise goes away but there are no 4hi or 4lo indicator lights on.
any ideas as what i might look at to fix this problem would be greatly appreciated

Couple things to check - Freewheel solenoid, FWD engagement switch, as well as all the vacuum lines going to the front axle.
It is a little surprising that your C/D orange light does not light up.

I got a new free wheel clutch solenoid but can im haveing a problem locating it, i looked under the air filter box and on the fender well.
is there another place it might be located?

Check the CV ax and hub flange. Just did it to mine. make sure to replace both sides and seals too. Its a pain to change out. Part is about 150 from the dealer.
Hope that helps.