I've had trouble with my 242 T-case in the last year. At Eagle Rock, the front diff kept losing all power, meaning the front wheels wouldn't turn, but the lever was still in part-time or 4-lo and the dash-lights showed it working. I had to keep disengaging and re-engaging 4x4 only to have it continue to do it. It only happens when accelerating and especially uphill, with a noticeable clunk. I only know it happens when I lose traction and hear the noise. I don't know if I was engaging the 4-lo and the 4-hi's wrong, but I never solved the problem. A few weeks later, I went up to local forest trail. T-case worked just fine, even uphill, until I left the area and disengaged the 4x4. At that moment shifting the lever down, all the sudden my dash lights showed part-time being on! For the next week, the 4x2 position for the t-case became 4x4 part-time mode. The Full-time and 4-lo positions stayed put, but the part-time position became 4x2. I did a couple test to find out that the 4x4 mode that was engaged was actually the one with the dash light on. The lever position was just out-of-whack positionally, not physically damaged or out of place. I took it to the dealership who wanted $400 to "replace the bad switch", but I took it home laughing. It fixed itself the following day, like it never happened

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2003 Limited, Silver - L.O.S.T. # 068957 Rockies
http://www.cardomain.com/ride/2127390/14
2006 Kawasaki KLR650