Tranny or Transfer????

I have a 1995 blazer 4X4 a year ago I had problems with the transfer, my blazer didn't move neither fordward or reverse, I try 4X4 and didn't engage, so what I did is that I it the transfer with a hammer while my dad press de 4X4 button and it enagaged, the tranny back to normal operation again.

three months ago I started to have problems with the reverse, it feels like it engages but when I accelerate the truck barely move, then I engage the 4X4 LO and it it move but like in steps and with a cracking noise.

I raise the two back wheels of the blazer and shift to reverse the tires try to move but it looked like it stuck then I move the tire with my hands and feels like it was stucked but it start moving

Since then I used the 4X4 for reverse, today I engage 4X4 LO to go backwards then I pressed the 2 HI button and it made the normal noise of swithing (the thing is that none of the lights on the buttons work) then i shift in drive but the tranny is only shifting in 1st and 2nd, normally the transfer is suppose to cancel 4X4 LO when it gets to certain speed.

Now my question is it a transfer problem or a tranny problem how can I diagnose the problem?:banghead:

If transmisson only has two forward gears and reverse is about gone you need to work on transmission.
Is the flyuid level good when it is good and warm/hot?
Have you pulled the pan and checked filter?
MT

the fluid the level is ok actually I changed the fluid and filter there is no signs of wear on old fluid actually is still red color the problem is always warm cold or hot doesn't matter

If reverse is weak or gone it is a internal transmission problem.
MT