My problem is similar to some other issues but with a different twist.

I let my 03 V8 Sport sit last night in 4L mode. We had a cool night 31F but up to 40F when I crank it up this am. I moved the switch back to 4H mode and the transfer case does it normal "clunk" but the LO light is blinking. It seems to drive ok (0.1 mile) but will not switch back to 4L (low gearing) mode or the light go out.

CHECK ENGINE, VSC TRAC and VSC OFF lights are on. If I switch to 4L mode the LO light stays on but transfer case stays in HI gearing. Switch to 4H mode and the LO light blinks along with beep-beep when in drive.

First I check fuses (all ok), then crawl under and find some seepage around the solenoid box but no drips in the driveway, etc. It's hard to say how long the oil has been there, but I doubt it started today. Definitely gear oil coming out of the solenoid box.

There are no more noises (clunks) when switching between 4H and 4L. I did not check all fuses, just the ones that made sense (under hood and under dash).

Similar threads are
One cause & fix for "VSC TRAC" & "VSC OFF" and
VSC / TRAC Light
Difficulty Changing 4WD?

Does the vehicle need to be on flat ground to do a zero point recalibration?

Does doing a zero point recalibration wipe out useful codes for tech?

I don't have an OBDII reader, but that can change.

I would hate to have the stealer get me for a few thousand.

Your thoughts?

- c bob

The transaxle will engage / disengage the front from the rear in LO but not in HI mode.

No changes with switching between 4L and 4H, but I can hear a very slight high pitched noise in the transaxle that starts out for 2 sec after switching then beeps continuously. Like maybe some acoustical noise coming out of the solenoid.

Drove to AutoZone and they ran the CEL. Code P1782 - short or open circuit in the transaxle. I disconnected / reconnected the transaxle connector. Then I beat on the transaxle housing with a hammer to knock something (anything) loose. No changes. Except it's definitely dripping transaxle fluid out through the solenoid housing. I'm now leaving a bread (oil) crumb trail . . . .

When I drove it the AT transmission would never shift to 5th. I am sure it's part of the ECU program. Not really worried about that.

Looks like I need to take it somewhere.

Bummed in Buford,
- c bob