The past couple of days my 4wd light on the dash has been flashing on and off while I'm driving down the road in 2wd. Any ideas on what's going on??

 

You have some vacuum issues. Check and make sure you get good vacuum on the outboard port to the cad when in 2wd. If you don't, find out why. If you do, most likely a problem with the cad itself.

 

Well now it stays on steady and doesn't flash while driving but turns off when I stop would it still be the same problem?

 

Yep. All that is, is a switch on the CAD. (passenger side of the front axle.) It's vacuum powered, and doesn't look like it is pulling off correctly. So, either not enough vacuum, or, something buggered up inside. Check the vacuum first, it's free, and easy.