Good news for me.
I have been posting and scouring this forum as well as others to find a solution to my 4wd problem on a 98 Blazer. I was getting desperate and had an appointment at the local Chevy Dealer ($$$$$$$). Apparently I'm not alone in this matter and others have provided valuable suggestions.
My 4wd quit working in 4HI but would go into 4LO. Plus the lights were doing funny things on the my Selectable 4WD.
Possibilities appeared to be 1) reset computer by disconnecting battery for a time, 2) replace vacuum switch, or worst case, 3) replace encoder motor (parts alone 600 to 700 hundred!)
Hurray! Disconnected battery (positive terminal only) for 30 minutes and it now works like brand new! Thanks to all who have posted on this matter...you've saved my bacon! ($$)
Bob