Update:

Pulled out interior consoles, center, front etc. Pulled apart area. Shifter for the transfer had somehow shifted out of the place it should have been. Inside of shifter had broken red rubber around the lever. I called mitsu and was told that this was to dampen the noise and/or some how guide it into gear. In pulling apart, the design allowed a bolt to fall into trans. After fishing with magnet for 3 hours decided to look at schematic and found access panel on trans. Opened it and ran the magnet through there then had to stick fingers in to find it. After putting it all back together, the shifter now works but the 4WD light doesn't come on. I can tell it shifts into gear because when I turn it becomes rough. Then I shift back and everything is good. I took partially back apart and had no vaccuum from the vacuum hose hooked to the boot. But, I did not shift with this off. Not sure if it is only a part time vacuum activated once shifting??? The other thing I was looking at is the 4wd indicator ecu. But they want 125 for that and its' Christmas so it will have to wait.

Anyone have any ideas of what to look at next?

 

my 01 Montero limited is stuck in 4lo an I have no clue on how to unstick it please help