Could be a lot of things, you should start with the 2wd/4wd select lever. Outside - make sure it's firmly fastened to the horizontal fork shaft. Inside - make sure the "fork lump" is not broken or missing. It's needed to slide the claw that eventually connects to the transfer case. If all that's good, follow the gear train to the transfer case. Make sure the mid-connect sliding gear properly engages/disengages properly with the transfer case driven gear. Then comes the front drive shaft. All that holds it in place is a spring that holds half a dozen 8mm steel balls in slots at either end. It's not uncommon for those balls to become disengaged from their slots at one or both ends.
Or - skip all that and remove the front drive shaft cover. If steel balls fall out, you've found your problem. If it appears firmly in place, drop the shaft - taking care not to lose any of those 12 steel balls. With the transmission in gear and the lever in 4wd, try turning the shaft that's sticking out of the transfer case. It should not move. Then try turning the shaft that's sticking out of the front center differential. It should not move either. Which ever end moves will be the end where your problem's at.
If you have to tear into the front end, there's a drain plug on the center housing (pumpkin).
//greg//