Have you created a new thread?
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While you are waiting for the switch to arrive, have you tried testing the resistance of the switch on each mode to determine if its faulty? Next best thing is maybe the relays might need to be replaced. Check out post #4 for the resistance values on the following thread link that another member posted.

4WD switch resistance and relays

I'm not sure if this will help you out, but let us know if it was the switch that caused the problem.

 

Well its been a while but I figure I'd give an update. After removing the three screws holding the contact plate that has 5 wires coming off of it, I found the plate had three dots located in the 12, 4, and 8 o'clock positions which I assumed indicates 2hi, 4hi, and 4lo but not necessarily in that particular order. I noticed that the half moon **** in the center of the plate was pointed off towards the 11 o'clock and 5 o'clock position, made a quick adjustment so that it pointed towards the dot located on the 12 o'clock position, now the **** is pointed at 12 and 6 o'clock.



Took it out for a test drive and it shifted in and out of 2hi and 4hi with no problems and best of all is that now the 4x4/4hi light turns off when shifting back to 2hi.