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hello,
my dad and i just got a 2000 durango 4x4 slt. auto w/only 109kmiles...we went to go and try the 4x4 and now the 4x4 lock light on the dash stays on. we put truck in N, shifted the 4x4 shift lever to 4hi, got inot some good mud went to 4lo got back on pavement put truck back in N, shifted the 4x4 shifter back to 2wd and now the dash light wont go away. it is not as bright as when engaged in 4x4 but dimly lit....also should you hear noticble gear selection when going into 4x4 hi or lo....
 

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I would get under the truck and check to make sure the transfer case gear selector arm is adjusted properly. It can easily slip.
The easiest way to be sure if you are in 4wd is to make a sharp turn in a parking lot and see if the fron wheels skip. If they don't, you're not locked in 4wd.

My 2000 R/T transfer case makes a very audible clunk when shifting into and out of 4wd lock.
I believe the manual actually reccomends that the vehicle be moving very slowly when you shift into or out of 4wd.

Hope this helps.
 
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