So i recently put it on full time 4wd and i can see the full time light on my dash but then it turns on and off intermittently, and sometimes switches to part time and back to full time, still turning on and off intermittently. it also stays off until i wiggle the lever, and sometimes that doesnt help either.
the first time i tried using the full 4 wheel, it worked fine. its my daily driver and i keep it on 2wd for most of the week. i recently went off the road then this happened.
i have a 2002 liberty and i recently bought this from a local fellow here too. i just wanted to know if anyone had the same problem here and knows what might be going on so I wont get screwed over by the mechanics if I need to bring it in for repairs...

The position sensor on the transfer case is bad. It is a very common problem.

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2007 KJ Sport, Mopar skids, OME/Blistien lift, JCR Offroad sliders
2014 JKUR

any way for me to fix this? im savvy enough to figure it out, plus i got a friend who is a mechanic hobbyist.

but the real question is, is this just an electrical problem and not a mechanical one? meaning is it actually still on 4wd even when the light is off?

Its not mechanical. Mine does it as well.

I have the part but I have been too lazy to put it in.

http://www.jeepkj.com/forum/f202/how-change-transfer-case-position-switch-44188/

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2007 KJ Sport, Mopar skids, OME/Blistien lift, JCR Offroad sliders
2014 JKUR

thanks alot for the info. the light thing doesnt really bother me so i guess i can do without it.. as long as i know that by putting it on 4wd, its actually on 4wd should be good enough, right?

As long as you are confident that you won't leave it in part time mode on pavement you are ok.

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2007 KJ Sport, Mopar skids, OME/Blistien lift, JCR Offroad sliders
2014 JKUR

yeah. i dont think i would. but its intermittently flashing on and off, so if i do end up doing that i would eventually know. lol but thanks