I was able to remove the position sensor yesterday and it turned out to be real easy. I used a 1 1/2" socket and a 18" breaker bar. The socket was not very deep - maybe 1 1/2" overall length. After removing the wire connector from the position sensor, I put the socket over the unit, being careful not to break the connector on the top of the position sensor. I then was able to use the breaker bar, from the back side of the vehicle and connect it into the socket. There was enough room to loosen the sensor. Once loose, I could unscrew the sensor by hand.
It is easier then I may have described it above.
Now, I did not have a new sensor, so I cleaned the old one up and reinstalled it. This did not fix the problem.
So if someone has the part number for the transfer case position sensor, please post it. The dealer in Northbrook Il want $109 for this part! I am going down to Joliet tomorrow and that dealer is usually a little less expensive for parts.
If this fails, I will be in touch Offrovering.
Gary