Codes and what do they mean.

Driving the other day and vsc trac off and vsc trac off with the green side by side tracs on and 4lo blinking and check engine. Autozone pulled a c1201 code and p2772. My four wheel drive would not engage over the winter and I was told it needed to be replaced for the price of 3000 by a toyota dealer. Did not fix it is a 2005 and now these lights came on so I am assuming my wheel drive is in fact working. Is car stuck in 4lo? And what do these codes mean. I am at my witts end with all of the answers I am getting and no one seems to know what is wrong with it. Would rather know and tell my mechanic before they start replacing this and that ande really not knowing. Thank you for any light you can shed on this.