In the process of resurrecting a recent purchase. Got it running and it will drive. I was able to shift through Hi-Lo and locked Hi-Lo. Box seemed fine except for a floppy, loose shifter. No sense of "engagement" from the lever. Haven't popped the boot off yet.
Anyone else experience this one before?
tia

-H.R.

 

Finally got around to looking into this. Kinda had to. Had some snow, 5"-7", here in south central TN and couldn't get it locked.
Ended up being the nylon bushing selector rod / yoke. It was broken at the snap-ring so the ball and bushing slid up the shaft.
Fixed it using a small hose clamp.
The ball has to be in the bushing before it will fit into the yoke.

I did order a new bushing but this will work in the meantime.

 

While you are in there, the real "shifting" part of that is actually on the transfer case itself. You and I both have the same as I have a '98 - the t-case is different in years newer and older, but only slightly.

There are two things that actually move the gears. The high/low selector and then the 2/4 selector. You might want to ensure that both of these can shift properly. The handle you are showing is nothing more than a handle portion that actuates the real shifting portion. See if the high/low can shift smoothly as well as the 2/4. The high low can get stuck as many leave their Discos in 4 High the entire life of the vehicle. You can remove that top portion and lube it up. There's a great video from the British guy up in Nova Scotia where he shows how to lube that up. If you are going to fully restore yours, this is worth a few moments.

 

It shifts great now. Only needs slight effort to change between hi/lo & lock/unlock.
You're right though. If it's apart to that point, would be silly not to check/lube the linkage.
Didn't get pics of external linkage but it was a little dry. No rust at all. Lubed it up and worked it in and out pretty good for a week.
This one, along with my wrecked one, were rust free as they both spent their lives in the south. I have one that won't budge and know it's rusty as h-e-🏒🏒.