How to shift np203 transfer case properly.

[rich weyand]

In LO LOC and HI LOC, the front driveshaft should spin all the time, even with the hubs in FREE.

Yes, don't go into neutral unless the engine is off or you are in PARK.

I would start by liberally dousing the shifter box with something like Silikroil or PBBlaster, to make sure nothing is stuck in the shifter itself.  You can just pour it all over it from the top through the shifter hole in the floor, and see if it frees up.  Mine is easy to shift back and forth through all five positions.  If the 4 LOCK light doesn't come on in HI LOC, then the LOCK lever to the NP203 is not moving far enough to engage HI LOC.

You could have a busted chain packed up in the NP203 or something drastic like that, but it may just be a balky shifter box.

[Chadwick717]

Ok. That's the next step.  My only concern now is the front shaft not spinning when I was in lo loc. truck drives around nice with no noises from the transfer case during normal driving, besides a clicking noise outside of the passengers window.

[Chadwick717]

Ok quick update.  Thanks for the patience as I figured this out. It was tough not knowing exactly what was going on.  I sprayed some pb blaster down the shifter box and let it sit.  Came back out and it was like I had a new shifter box.  I now have five definable positions a long with a working light on the dash.  I drove it around in hi loc with the hubs free and the front driveshaft spins right along with the back one like it's supposed to. I'm pumped!!  Thanks for all the help Rich!!

[rich weyand]

I love it when the magic works. 

Glad you got it sorted.  BTDT on all of the above, but it took me longer to figure it out!  Those shifter boxes can give trouble because they are exposed to all kinds of road dirt and dust, so cleaning it out good once in a while is necessary.  You probably want to run a little engine oil down into it now that you have it freed up and operating properly.

Enjoy.  And don't forget if you have the hubs in FREE that you need to oil that rear output shaft bearing.  Run it in HI LOC for a couple miles the first time you drive it every day, then shift into HI, which you can do on the fly.

[edit] Actually, if you don't have the part-time kit in it, you don't need to run it in HI LOC to oil the rear output shaft bearings.  You will either be hubs in LOCK or transfer case in HI LOC, or you won't move.  Either will oil that bearing.