The actuation of the front diff clutch isn't mechanical, it's driven by vacuum alone. Your 4wd shifter will send power forward to the diff but if it doesn't engage you won't have 4wd.
I cured my blinking light problem by snipping a few mm of vacuum line off each connection to tighten them back up and that worked for me. Check the FSM, it has complete coverage for troubleshooting that system.