So dash lights for 4high and 4low work after you shift into 4WD as they should but there is no power to front axle?
And in 4low when you drive you are in Low Range right?
If so then shift motor and transfer case are working, which is good news
Bad news is the PVH(pulse vacuum hubs) are not locking front wheels to the front axle.
Read here:
http://www.therangerstation.com/tech_library/troubleshoot-fix_pvh_hubs.shtml
And here:
http://www.therangerstation.com/Magazine/Apr04/offroad.htm
In 1999 model the GEM(module) controls the 4WD.
The switch on the dash doesn't control the lights on the dash, meaning when you select 4High, for example, that selection goes to the GEM.
GEM activates Shift motor on transfer case, to change to 4high.
Inside the shift motor are 5 contacts, these contacts are setup so the GEM can tell what "gear" the transfer case is in at any given time.
i.e. contacts 1 and 2 connected, 3, 4 and 5 not connected = 2WD, contacts 1 and 4 connected, 2, 3 and 5 not connected = 4high, just an example
When shift motor has moved to 4high position, 1 and 4 connected, GEM shuts off shift motor and THEN turns on the 4 high dash light.
So there should always be a short delay from turning the switch to 4high and the dash light coming on, because light shouldn't come on until transfer case has actually been shifted and it is confirmed by the contacts in the shift motor.
Flashing dash lights means motor is NOT turning, contacts are not changing