Late entry to the "stuck in 4WD" discussion
I have a 2000 Eddie Bauer 5.4L 1st Gen with the same problem. I could go between 4H and 4L, but not to A4WD. Unfortunately, I'm not great with car repairs, and I had no money for a real tech, so being the broke moron that I am, I just kept driving in 4WD on dry pavement. BAD decision! (more on that later.) After doing hours and hours of research, I was more informed, but still confused. Things got further complicated because of the !st gen, 2nd gen thing. I ended up looking for parts shown in diagrams on Ford's website that weren't actually in my truck (wrong gen?.) I kept digging, and the possible sources for the problem seemed endless.
1. Stuck, or broken transfer case 4WD shift motor
2. Leaking vacuum line(s)
3. Bad GEM module
3. Blown fuse(s) (several that matter)
4. Bad module(s) (several that matter)
5. Bad washer of some kind in transfer case
6. Bad "4WD disengage solenoid"
7. Dysfunctional transfer case.
8. Old, crappy, or low transmission fluid
9. Broken, dysfunctional 4WD switch
10. Mismatched tire / wheel sizes
11. Bad Karma (sorry, I just made that one up)
I'm sure I missed some...but anyway, after a few weeks (and driving WAY too many miles in 4WD) I finally had enough $$ to pay a real mechanic. His diagnostics turned up many failure codes in the GEM module. Bad news: a new one costs between $350 and $500. The Good news: I own a second 2000EB that's the exact same model, and that was sitting in my driveway (not registered.) I pulled the GEM on that truck (HUGE pain) and had the tech put it in the problem truck. Errors codes GONE, and I could now hear a click when switching from 4WD-H to A4WD, which previously was not happening. Problem solved. More good news, right? Well...
Now, back to the "driving way too many miles in 4WD" thing. Prior to getting the truck serviced, I was still driving the truck in 4WD, and on dry pavement. I know, shame on Me! After a while, the truck started to develop a "wobble" in the front end, especially noticeable around 30-40 mph. It got worse over time, but I had to get to work.
Results: Despite fixing the GEM module and having access to A4WD, it is still stuck in 4WD. I'm fairly sure that I may have destroyed one, or both of my CV axles, the drive-train, the transfer case or any number of other expensive parts that I can't afford. Truck goes in to the shop tomorrow so they can assess the damage. Maybe It's got a blown "wobble" fuse?