Cables may be frozen. I bought mine from a field...had not run in some time. Hi/Lo cable was frozen. I used PB blaster and a craftsman auto hammer impacting the entire length of the outer shield of the cable as well as the levers (primarily the clevis pins) on both the TC and the shift lever. Might want to remove the trans tunnel cover for access to cables and see what you find.

 

Just did the t-case and tranny in a 99 Disco II and ran into the same problem. I originally thought the cable was bound on the t-case as it would NOt move out of N . I ended up taking it back out and spraying it with PB blaster and was able to work it back and forth through the gears with a rubber mallet. Once I put it back in it worked fine. I also could not move the H/L shifter out of H once I started and ran the vehicle . It took some rocking back and forth in D then N then R at 2-3 mph speeds to FREE the case from H and then I was able to easily go back and forth between H N and L.
I would jack it up and keep rotating the tires and drive shafts back and forth while someone tries to get it in High. I'm sure, like mine from sitting in a bone yard, it is just bound up and needs to be worked into gear by moving the drive shafts and thus the internals of the t-case.

 

Parkerlander, Thanks for the suggestions regarding rolling the wheels while in the air. We were able to move the shifter into H. The transfer case was clicking prior to going in so it was an engagement issue.

 

Maybe check the XYZ switch to see that it's plugged in correctly and it looks like there are at least 2 fuses related to the transmission so double check all of your fuses.

 

First thing this morning I pulled up the wiring diagram for the Shift Interlock Cicuit (actually looked at it late last night, printed it out, but left it home! ) and starting going through the related fuses.

#13 underhood -check
#20 underdash DS -check
#21 underdash DS -FAILED (15A)
#25 underdash DS -check

Replaced #21 with new 15A fuse and all is well!
My theory for how it failed (I bought the vehicle in this condition -stuck in park, key stuck in ignition): Previous owner had the bent key in the ignition and kept cycling it forward/backward (ON/OFF) trying to remove it and overloaded the circuit (like flipping a motor switch on/off, the current draw is the greatest at initial startup) and blew the original equipment fuse.

Attached is the wiring diagram for posterity sake.
Thanks guys!
(now, on to diagnosing cylinder 5 & 8 misfires...)

 

Good deal! I'm glad you found the problem. I almost didn't bring up those fuses because I had assumed that you had checked those already. In the future try and always eliminate the easy things like fuses first then move on to the other possibilities.

Now on to the misfires. I would start by changing the wires and plugs. If you have done that then Double check that you have the wires on correctly. Then look at the engine in the dark while it is running and check the plug wires to see if you see any thing. If there is a small pin hole in the wires then they may arc and it is easy to spot in the dark.

How is the truck running and driving now that you got it rolling?

 

ok great ImQuattro ,,,,,glad you got it into gear. I went through hours of turmoil trying to figure out what went wrong with my disco. First I did the t-case which went bad ( gear implosion) , then taking it back out because the transmission was also bad , and then re-doing it all again when I could not get it out of N. All in all I learned allot about the system and now have it back rolling again. All seems well but I really have not driven it much but around town. I may be hitting you up about a VW 4 motion ? if that's ok.......have had 3 A6 in the past but just switched out the last one for the 4 motion (2002) for my last teen driver. she loves it!

 

Any time!

 

Found two bad wires
Replacing all with new.

Plugs are new NGK Rtype

Not there yet, still trying to get the engine running enough to break it in.
Then oil change and drive, still needs registered, plated,& inspected...

 

So, we pulled the upper intake for the umpteenth time (I can now have it off in less than 15 minutes and this one has SAI!)
Ok, anyways, pulled the coil pack & wires, and found 5 & 8 to be dead. Must have died during the process of the overhaul. They look like near new but dead's dead.
I installed new NAPA premium wires, 7mm yes , lifetime warranty, yes!
Reassembly takes a bit longer.
Hopped in, started it up and smooth as butter. No codes. Kept the RPMS's between 2-3K for 15-20mins varying the engine speed and watching the ECT on the scan tool. Temp never went over 195F and this was at those RPMs with no air other than what the rad fan provided.
After the break-in period was over. I shut it down, drained out the break-in oil, changed the filter, and topped off with new oil.
Excited to get this one on the road! (and off too).