Manual transfer case shifter shows 4H but in 2H.

[Ceaser76]

So I had my transmission replaced a few months back, everything was good until I tried to put it into 4H the other day. I hadn't used 4x since I had the work done, so I didn't notice, but the shift lever doesn't line up with the correct gear.  Shifts fine between 4L, N, and 2H. Just shows the wrong gear on the shifter shroud on the floor.  It would shift into 4H bit the lever is too far back and won't allow it to go into 4H.  Is this just the linkage needing adjustment or is there something more? The transmission mount was old and worn, so I changed it out with no difference. 

[davester]

I would first verify that the lever on the transfer case is indexed properly (as in, it's properly aligned/installed on the post coming out of the transfer case), then, if it is, adjust the lever.

 

You can also try shifting into each mode in the transfer case with the lever disconnected, just to make sure nothings preventing it from going into each mode.

[Ben Savage]

The only thing preventing it from going into 4H is how far back the lever is.  The opening isn't big enough to let the lever back enough to fully engage.