As mentioned in post #2, the root cause is a leaking vacuum switch on the transfer case. After the switch is replaced, the transmission and transfer case seals might not need replacement, (they might seal up on their own). Check the vacuum lines at the switch for the presence of fluid. If fluid is sucked into the lines it will cause slow engagement/disengagement of the front axle. The vacuum system is shared with the HVAC system which can cause the blend doors to operate slowly, or not at all, if they become contaminated with fluid. The lines must be cleaned out, along with the axle actuator under the battery tray.
The switch is located on the left side of the transfer case, slightly above and inboard of the front output shaft. Most auto parts stores stock it.
http://www.oreillyauto.com/site/c/de...eyword=600-500
