what do these lines do. i noticed the red wire/tube is broke is it good bad or to be fixed or how to fix it

 

Those are vacuum lines that control the shift motor in the front axle. When they are damaged or disconnected then you have no 4x4.
I have some picture of how they hook up on the transfer case if you need them.

 

it looks like theres a piece of shrink wrap over where its broke.? i can slide it right back in but im afraid it will fall out again

 

You can get universal rubber vacuum tubing at the parts store that will fit over the line that is broken. Get some of that then slip it on the broken section and use some RTV to stick it to the broken line. It wouldn't hurt to slather some RTV over the outside of the patch to make sure it won't leak. Just don't get any of the sealant inside the tube or again, no 4x4.