Hi everyone!
I just purchased a 2001 Montero Sport. Needles to say when I tried to use the 4WD nothing happened. No lights, nothing. I read here on the forums regarding this problem.and saw that someone (I forget who you are but THANK YOU! ) posted to shift it in and out of 4WD to unstick the contacts. So today while driving to work I did just that at every stop light. Eventually I saw the green 4WD light start to flicker as I moved the shift lever! By the time I pulled into the parking lot lo and behold, the light stayed on and the 4WD was fully engaged! Now to do some more testing after work but it just goes to ahow you to do your research first. Next is a tranny oil change and then let me see how long I can keep her running with regular maintenance. Here's to along and happy relationship!

 

It sounds like you have the lights and the systems working, but may have a bad connection on the back of the instrument cluster. There are several plugs under the dash that click into the cluster. One of them might got pushed in and not seat properly (until it wiggled enough). You can pull the instrument cluster out and check that. Another possibility is a bad connection at or near the shifter itself where the position indicator switch is located.