After doing battle with my 4lo on and off for the last 3 year, I FINALLY fixed it. Problem is I'm not sure which step or steps can take credit. That said, I thought I'd share what I did in hopes that it helps someone with the same problem. My suspicion though is that the battery reset is what did the trick. Anyhow, here's what I did:
I loosened the three bolts holding the actuator to the case (maybe 4 or 5 cranks of the wrench- enough to get it to come out an eighth inch or so). Once it was lose I sprayed a small amount of WD40 in between the case and actuator then tightened the 3 bolts up.
After letting it sit for a few minutes I jumped back in the truck and continued flipping between 4hi and 4lo and would keep it in 4lo every time I didn't hear the beeping from under the truck and would leave it in that position for 10 seconds or so. After I did that a few times things got bad... I thought I'd broke it and broke it good. 4hi would not disengage and the 4lo light (and beeping) wouldn't stop no matter what position the switch was in.
At this point, I had to go back to 'cure-all' we used to use at Circuit City when we triggered check engine lights by accident when installing remote starters and that was to disconnect the negative battery terminal for 5 minutes.
After 5 minutes, I reconnected the battery and started the truck. The faithful cure-all had done it again! Phew! All the warning lights had gone back to normal and things were back as they were supposed to be.
I tried 4hi and it worked so I was feeling better. I moved it over to 4lo and wouldn't you know it... there was the 'chunk' noise of the low gear kicking which I hadn't heard in 3 long years!! What a magical noise that was. I cycled through everything a few more times then took it out for a drive. It all worked exactly as it was supposed to!!! To say I was thrilled would be an understatement.
So long story short, I'm really not sure which part of that song and dance made the difference but either way, if you hear that beeping coming from the actuator itself like I did, give this a shot! The only thing I'd probably skip on the first try is the WD40 since that may not have been a good thing to do.
I hope this helps someone avoid that really expensive repair. :ybrick: