4th gen stuck in 4Lo. Help!!

My 08 v6 is in the shop right now with this issue, not sure the previous owner ever used 4 low so when I tried it instantly seized up. Ive used 4 HI numerous times with out any issues. When I put it in 4 LO tho the light went solid, I tried to drive but there was no power, as if it was still in neutral. Then A lot of hiccups and bouncing and rough gear changes from 1st to 2nd then finally into 3rd gear where it seemed to drive normal. Drove around the parking lot for a minute and when I tried to take it out of 4LO the lights started blinking, the 4x4 light started blinking, the Diff Lock started blinking and nothing seemed to work. Even shifting from park, neutral and drive was very rough and jolting. After that the 4lo light kept blinking, even with the switch in 2hi. Drove it to the shop and it wouldnt go higher than 3rd gear, think it was stuck in 4lo but the 4x4 light was off. Got everything tested, needs a new actuator. We couldnt find a used one, so a new one is like $1,600. With labor and the testing itll be like $3k out the door. I tried bashing with actuator with a mallet, tried switching 4wd on and off for half a day, but to no avail. I'll be putting that girl in 4LO as often as possible when i get it back!
 

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