The problem is your ignition switch. I have a '97 K3500 that was doing the exact same thing except the 4wd would be disabled when the ABS light was on, which was all the time, and (after much wasted time on other things), I replaced the ignition switch module and everything works. These years of trucks had poor ignition switches. Good luck!
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Thursday, April 2nd, 2009 AT 10:55 PM