I have a 1999 Expy 5.4 that we are still very much in love with however, I have a few issues that are causing concern.
1. 4x4 light flashing when in AWD switch position. Locks into 4x4 hi and 4x4 low ok and functions properly any suggestions?

2. Tranny started acting up the other day. Cant find reverse... Shift indicator on dash is way out of line, drive is now in 2nd position on indicator and reverse is in neutral position when it works?????

This is a great truck and I will fix these issues just looking for some input were to start so I dont throw away hard earned dollars.

 

Flashing 4X4 light is the check engine light for the Transfer Case. You need the computer to read the code.

 

what kind reader do you have, Im having the same thing. Will run in A4WD, then after a little bit the light starts blinking

 

For your shifter position problem, I had the same problem on my '97 and the dealer wanted to charge a few hundred dollars to fix. Took 5 minutes.
There are two torx screws thatloosen up over timeunder the dash onthe steering column. With a flashlight, look up while pulling the shifter lever in and out like you would when going from drive to reverse or taking it out of park.