I have the same issue. I believe there is a "keeper/gromet" where the shifter linkage attaches to the transfer case that wears out. Mine is completely gone, so my shifter is completely detached. I think I found a Service Bulletin that addresses this, TSB# 212199. I am going to my local dealer at lunch to get the parts I need. I'll post back with more info today or tomorrow.
To the OP: I was in 4wd when my linkage came loose. I just crawled underneath and flipped back in to 2wd at the transfer case. You may be stuck between 2wd and 4wd.
Last edited by gcjoe; 01-13-2009 at 10:29 AM.