96 Explorer 4WD Problem

As I was running in 4WD through some soft sand yesterday, my explorer seemed to slow down...almost like the transmission was in neutral. I kept moving forward, but not nearly as much as you would expect for as much gas as I was giving it. I took it out of 4-wheel low and put in back in 2wd and it seemed to run fine. However, about 40 miles later, both my 4wd and 4-wheel-low lights started flashing. Does anybody have any ideas what the problem could be? Am I damaging it any further by driving it in 2-wheel-drive?

Thanks,
Grant

Same thing happened in my 96 explorer. Just put the car in park and flip the switch to 4WD then 4WD LOW then back to 2WD. The lights should stop flashing. I had read that sometimes the 4WD cannot disengage fully unless the car is stopped and in park. I doubt that you are damaging it any further.