Thanks LoJac. Im calling the dealer tomorrow and just ordering it. My buddy still hasn't returned to MA yet and we recently had some snow where I could have used my 4wheel high lock. I believe both could be my issue (t-case motor and buttons). I was quoted at $85.00 for the buttons from the dealer.

New battery - service 4WD tranfer case problem solved
 

Just a note, (2008 H2) my service 4WD light starting coming on from time to time and then my 4WD switch came on in "N" and the service 4WD light stayed on. Noticed also that my truck starter was a bit sluggish at start up so I checked the voltage, sure enough, barely 200 cranking amps. Replaced battery. All problems solved immediately. No more service light and transfer case also started working properly, so i guess it was a voltage driven issue?

Haven't had a single issue since the battery was replaced about 3 months. Side note, Advance auto had the best price for a sealed gel battery when using once of their coupons.

Thanks for your input Matlock. I recently replaced the battery with an advanced auto parts Gold Battery. I had the issue with the old battery and this new one. I replaced it because it was dead after one cold morning. Might upgrade to thr platinum battery as this one doesn't seem to take much before I notice it slowing down when it cranks over.

I ran into a friend of mine I used to work with at a local Chevy Dealer today. This week hes going to take a look at it; said it might be the contol module or just need to be reprogrammed with a Tech II. I will keep this forum updated with any further advancements.

Update: Gentlemen that I used to work with has not looked at my HUMMER yet. After I told him what was going on he thinks its the transfer case control module. Told me it would be $325 plus the $150-$200 for install/programming. Does this sound like could be the problem? And does this sound like I would be overcharged?

I had this problem. Turned out to be a couple of issues (inexpensive $-wise).
Turns out that mice had made a home in my fuse box in the engine bay. Between them eating the insulation and using the top of the fuse block as a toilet, I wound up with no power at the switches. Traced the issue back to the fuse box where I found the carnage.
After 13 insulation repairs, 11 splices, and the removal of one mouse corpse, still no juice.
Pulled the wiring clips from the bottom of fuse block and cleaned. Checked all fuses (sat). Reinstalled fuses and ran continuity checks from Buss inputs to fuse outputs. Found that the fuse socket coming off the Buss was Fubar. No continuity from buss to fuse. Since I don't use ONSTAR, I swapped the output wires on the fuses between ONSTAR and transfer case module. Viola, I now have indication and control of T-case.
Check for power at the switch module. If not there, trace it back.
MikeH

Update:

My buddy hooked up the tech 2 and tested all the switches and they were working fine. He narrowed ot down to the transfer case control module; as he could not communicate with the module. He also couldn't control the transfer case motor manually either.
$325 for the module then program.

Thoughts?

2008 Genuine Hummer H2 Transfer Case Control Module 24244539 | eBay

$80 you sure he's your buddy?

Thats for an 08. I have a 03, they're different modules.

03 one here 2004 American Motors Hummer H2 Electrical Chassis Control Module Transfer Case Under Strg Col | Used Auto Parts | HollanderParts

$88

Check to make sure the module has power. Mine didn't. Traced it back to the fuse block. Only takes a couple of minutes with a voltmeter to see if the module is powered. If there's no power, it can't communicate.