Please help!! 4x4 problems

I have a 1996 Blazer 2dr 4x4. About a year ago I engaged 4hi, once I switched back to 2hi I heard a slight grinding sound. After that I would press the button the lights would flash and I could hear a clicking sound coming from the dash as I would normaly and the light would flash but 4wd would never engage. I have followed the advice of this forum trying different things over the past 8 months or so. Right now the status is: the lights only flash during the self check at start-up(when I first turn the key), I can no longer hear the switching sound coming from the dash, I can manually engage 4wd by pressing the actuator under the battery (I pull the cable and spin one tire the other goes the opposite direction), I have disconnected the battery for 15 mins. In the past I have ALWAYS heard a clicking sound from the dash, and now I don't. What makes that sound? Could I engage 4wd this way if the encoder motor is bad? Basicly I need to know how this thing works. All of you have been so helpful in the past with this and other things. I am looking forward to ANY advice you may have on this matter. Thanks in advance.

Hunter

Transfer case encoder motor is gone.

Replace and enjoy, this is common, see if you can pick one up at a wrecking yard.