For anyone that has the same problem as me this is the fix.

My problem was that I could put my truck in 4x4, the lights would come on and you could feel it engage. Yet when you gave it gas the rear tires spun and that was it. For me my right front hub was seized. The drivers side was fine, but my whole right side seized up. The fix was buying a new right side hub and bearings, actuator, and the IWE + Vacuum solenoid. I bought my 04 with 50k miles and the previous owner must of never engaged the 4x4. My mechanic said the right side seized up because there was no lubrication to it from lack of use. Parts all added up to a little over $400 dollars. Anyways I hope this helps anyone who had the same problem. It has been a nightmare for me and its good to have everything working again

 

Well, I just posted this problem, I should have read a little further first. My truck is doing the exact same thing and it's an o4. Great, more money to spend!!!Thanks for your post.