Re: HELP!!: I NEED SERIOUS IFS HELP!!
This might sound dumb, but have you driven in reverse while in 2wd after shifting from 4wd? Even if the t-case is disengaged, the hubs need to be reversed out of the lock position.
Also, have you checked that your actuator is releasing? Ther might be a wiring problem that is not allowing your hubs to disengage.
By the way, I am pretty sure that your problem in in your hubs. I have had this problem, but it has gone away on its own after taking the aforementioned steps.
'89 K1500 350/700r4