VSV’s/ADD
Don't guess at it, troubleshoot! Start at the twin VSV's (Vacuum Switching Valves) on the driver fender wall. There are two long vacuum hoses that come up from the diff, one goes to each VSV. Check to see that one of the two hose nipples on the VSV’s has vacuum (engine running, 4WD NOT engaged. If no vacuum either side, check the check valve going to the intake manifold and look for loose hoses or a hole in the reservoir. If there is vacuum going to one hose, then put it in 4WD. See if the vacuum switches to the other hose. If it does, and no 4WD, problem is the diff actuator or the line to the diff. If it does not, then just switch the hoses and you should go into 4WD. This confirms diff is okay. (Mark the hoses first so you know which belongs where!)
OK, switch them back. Then use a test light to see if electrical signal from the TC also switches sides of the VSV. If it does not, problem is the TC, the switch on the TC, or the TC actuator, or its wiring back to the button (last two for non-J shift only). If it does, but the vacuum does not, the problem is the VSV itself.
I start troubleshooting at the VSV's because you can figure out where the trouble is without having to climb under the truck. [None of this applies to '01-'02; the front actuator is electric and controlled by a 4wd ECU.]