Maybe this will help?
http://www.jeepforum.com/forum/f292/esc-off-then-serv-4wd-4-low-4wd-lights-whiles-driving-1342050/I dont have any experience with the transfer case in you liberty, but I have seen on other electronic transfer cases that when there is a problem engaging 4wd its usually because of some sensor on the transfer case.
In my experience, its usually due to not using 4wd. Lack of use causes the sensor to get gunked up. But once you start actually using the 4wd the problem eventually corrects itself.
So, somewhere on your t-case is a sensor. Remove it, clean it, or replace it and that will hopefully fix the problem.
You may want to try asking this question over on the KK forum.