So I bought a 2000 Disco 2 that needed a transmission and other odds and ends due to the front prop shaft fail/beat a whole clean through the side of the tranny. After doing the trans swap (using the original t-case and a new front prop shaft) she runs great! 70mph with no vibration and no issues. 4 wheel high and low work and have noticeable difference, although I never drove a disco 2 before this one... The only problem I have, aside from the 3 amigos, is that the Differential Lock Warning Lamp is on. No matter if it is in high or low and no matter how much time it has to clear (I have owned and worked on numerous 4x4s and have read several boards on place the d2 in and out of 4 wheel high/low). Given the "binding" type feeling while turning in 4 wheel low I am pretty sure I have everything working and that all 4 wheels are in fact doing their job. Did I miss something? Any ideas?

 

On top of the t-case is a nut, that nut it what the CDL linkage attaches too so you can engage the CDL from inside the cab.
You must have bumped/moved it while working on the truck.
Sounds like it is engages just enough to set off the light but not lock the CDL.
It take a 10mm wrench, turn on the key, turn the nut, check dash for the light to go out.
It only needs to move a 1/4 turn, I do not know which way though.

 

Thank you Spike555! I will try this Sunday and post a follow up.

 

clock-wise to lock and you will hear a slight "ting" when it locks, opposite to un-lock.

 

Since you have open differentials ft & rr, the center can be locked and you may not notice "4wd bind". This is a good time to rig one of the various CDL options.

 

Before getting all dirty, if when in a parking lot, can you turn a tight circle, slowly, with out the front tires lurching as when they are locked up? If not, you have a bad CSL switch.