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I am having the same problem with the 4wd not working on my 88. Do you have the vacuum harness in tact from the transfer case to the front axle? There should be three hoses that go the the motor on the axle, two that run up to the engine compartment, and four that come off of the transfer case hooked to a rubber plug that hooks to the top of the tcase. This is called a vacuum harness if you can't find the name for it. The dealership I purchased mine at had no clue what it was; the shop foreman had to order it for me. Costs about $30 dollars. After you hook it all up and you still don't have vacuum, check all of your vacuum connections for the engine(emissions). The 4wd runs off of the same lines.(pretty sure). Look in your Haynes manual for the Vacuum diagram for the correct way to hook everything up. If that was your problem, I hope this helps. I have to take mine to my mech to rehook all of my vacuum correctly since I still don't know what everything on my 258 is called or does.
Good luck.

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