Flashing 4WD lights means the shift motor(on transfer case) is not moving when when "told" to move
1995 was first year the 4WD control was moved to GEM(generic electronic module), earlier had separate control module
The shift motor is a 12volt motor that works like power window motor, 12v/Ground causes motor to turn one-way(window up), Ground/12v(reverse polarity) causes motor to turn the opposite way(window down)
Inside the shift motor unit is a Contact Wheel, it has 5 contacts that are either Open or Closed this tells the GEM the position of the motor/transfer case, 2WD, 4high, or 4low, each has a different contact open/closed matrix, contacts are connected to GEM
Switch on dash is connected to GEM, when a different position is selected the GEM gets that signal as a change in voltage from the switch
GEM then activates the Electric Shift Control Module(just 2 relays in a separate box), this sends either 12v/Ground or Ground/12v to the shift motor depending on where motor was before, contacts open/closed
GEM looks for Contacts to change as motor moves.................
If Contacts do not change then GEM opens Relays(stops power to motor) and Flashes 4WD lights, letting driver know there is a problem.
The GEM controls the 4WD lights, and lights them up when Contacts are in the correct positions, so in a working system there will always be a delay between selecting 4High on the switch, for example, and the 4high light coming on, delay is from motor turning transfer case shift rod and GEM getting confirmation from contact wheel that correct position has been achieved, GEM then turns on the 4high light(or flashes light if it's not in correct position)
Shift motor has its own fuse, in 1995 that is in the engine fuse box, #16, 20amp, if it is blown then motor could not move and dash lights would flash
Also fuse #27 in Cab fuse box, 15amp, for GEM, but GEM runs all the electrics in the cab, i.e. wipers windows, locks and lights, so you would notice other issues if that fuse was blown.
Good read/look here at the shift motor:
http://www.explorerforum.com/forums/index.php?threads/how-to-rebuild-4x4-shift-motor.123542/
Contact wheel can be seen
Because this electric motor is not often used in most Rangers it's brushes often get stuck or dirty so no power to motor when you try to use it.
Tapping on the shift motor will often free up the brushes inside, so it will start to work again, but it will quit again, so rebuild or replacement would be needed
If you have shift motor out then you can apply 12v/Ground AND Ground/12v to the two motor wires to see if it turns BOTH ways
It is a good practice to shift from 2WD to 4low and then back to 2WD once a month, you don't have to move the truck, you are just turning transfer case and electric motor the full 270deg back and forth to keep it clean, connected and lubed