1998 Chevy S-10 4-wheel drive problem

SELF-DIAGNOSTIC SYSTEM
RETRIEVING DTCS
NOTE:Diagnostic Trouble Codes (DTC) are displayed on 3 transfer case shift select buttons. When proper conditions are met, select buttons will blink to indicate DTC from "1" to "4".

Turn ignition off for at least 6 seconds. Locate DLC near right side of steering column. Install jumper wire between diagnostic pigtail (Orange wire at DLC, terminal No. 13) and ground.
Turn ignition to run position (engine off). Observe shift select buttons. If all shift select buttons blink once at same time then stop, no DTCs are stored. If only one code is stored, that code will blink repeatedly, with a 3 second delay between sequences. If more than one code is present, next code will flash after a 3 second delay, then sequence will repeat. Count number of blinks for each code. See Fig. 1.
Write down all DTCs. After retrieving DTCs clear TCCM memory and repeat procedure. See CLEARING DTCS. If DTCs return, perform appropriate DTC test.

SELF-DIAGNOSTIC SYSTEM
RETRIEVING DTCS
NOTE:Diagnostic Trouble Codes (DTC) are displayed on 3 transfer case shift select buttons. When proper conditions are met, select buttons will blink to indicate DTC from "1" to "4".

Turn ignition off for at least 6 seconds. Locate DLC near right side of steering column. Install jumper wire between diagnostic pigtail (Orange wire at DLC, terminal No. 13) and ground.
Turn ignition to run position (engine off). Observe shift select buttons. If all shift select buttons blink once at same time then stop, no DTCs are stored. If only one code is stored, that code will blink repeatedly, with a 3 second delay between sequences. If more than one code is present, next code will flash after a 3 second delay, then sequence will repeat. Count number of blinks for each code. See Fig. 1.
Write down all DTCs. After retrieving DTCs clear TCCM memory and repeat procedure. See CLEARING DTCS. If DTCs return, perform appropriate DTC test.

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FUNCTIONAL TEST
Place transmission is Park position, turn ignition off and wait at least 6 seconds. Turn ignition to run position (engine off) and watch 3 shift select buttons. If all 3 buttons blink once, go to next step. If all 3 buttons do not blink once, see step 2) in FUNCTIONAL TEST FAILED.
During step 1), if one button stayed lit to indicate transfer case shift position, go to next step. If one button did not stay lit, see step 4) in FUNCTIONAL TEST FAILED.
Shift transfer case to 4HI, to 2HI, then back to 4HI. If transfer case mode shifts between 4HI and 2HI, go to next step. If transfer case mode does not shift between 4HI and 2HI, see step 5) in FUNCTIONAL TEST FAILED.
Apply parking brake. Place transmission in Park position (A/T) or in 1st gear (M/T). Turn ignition to run position (engine off). Place transfer case in 4HI position. Press 4LO shift select button. If 4LO shift select button blinks for 30 seconds then stops when 4HI button illuminates, go to next step. If button blinking does not respond as indicated, see step 7) in FUNCTIONAL TEST FAILED.
Place ignition in run position (engine off). Shift transfer case to 4HI position and press 4LO shift select button while noting blinking. Place transmission in Neutral (A/T) or push clutch to floor (M/T). If 4LO shift select button stops blinking and stays lit when transmission is shifted as indicated, go to next step. If 4LO button does not respond as indicated, see REDUCED OR NO MODE & RANGE SHIFT OPERATION test.
Press transfer case 2HI shift select button and shift transfer case to 2HI position. Place transmission in Park (A/T) or in 1st gear (M/T). Turn ignition off. Using a jumper wire, ground DLC pin No. 13. Turn ignition to run position (engine off). If all 3 shift select buttons blink once then stay off, test is complete,
CLEARING DTCS
NOTE:DTCs will not clear if 10-amp courtesy lamp fuse No. 8 is not removed for at least 30 seconds.

Turn ignition off. Remove 10-amp courtesy lamp fuse No. 8. Wait at least 40 seconds and reinstall fuse. Cycle ignition on and off 5 times. Now all DTCs will be cleared from TCCM memory.