96 Tracker 4x4 not working.

My 96 tracker transfer case quit for no apparent reason. I got all 4 wheels off the ground. ran it, and you can here it going into gear and the dash light works but no power to front driveshaft. I got under there while it was running in gear and was able to turn the shaft about a 1/2 turn either way. no clunking or anything. And the front cv's turn when turning the shaft. Anyone know about this problem?
Is there an ajustment or is it t-case time?
(its not the hubs)