2001 transfer case problem
 

i just purchased a 2001 expedition. In a4wd it binds i have disconnected the wire harness to the transfer case and fuse 104 still binds i have removed the front drive shaft all is ok then.when in a4wd is there supposed to be a light on the dash to indicate I am in a4wd any suggestions or is my transfer case fried?:)

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