Yesterday I tried to put my 03 h2 in to 4lo or 4hi lock or anything. The orange light blinks then the transfer case makes a loud clank and then clanks again but does not going to anything else. Then all the orange lights go off and the service 4wd comes on. I have even tried to put it in to neutral but the red light just blinks then the service 4wd light comes on...

 

Sounds like a bad Transfer Case Shift Encoder Motor or a bad shift fork.

How many miles are on your T-Case?

 

140k miles

 

Dang thats alot of miles. I have 03 also and it has 80,000 miles. Does your H2 still drive with the service 4wd light on? I am just wondering.

 

yes drives just fine it went in to 4lo and 4 hi lock 2 weeks ago when i tried it just doesnt want to do it now

 

I am betting is an encoder motor.