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I would think the indicator switch for four wheel drive would be on the transfer case, not the transmission. Switch on trans is probably for reverse lights.

 

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switch should have two studs on it and wires slide over round studs. will take picture for you in morning. but should have 2 wires. i have both setups will crawl under and check them out when sun comes up..

 

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Ok 80 has 2 wires one green one white with black stripe. W56 has one green wire. Do you have old transfer case? Looks like sending unit is threaded the same.

 

80 uses same plugs that are one marker/blinker lights. Think white with black is common.

 

i have the opposite problem here where the harness at the transfer case was disconnected, plugged it back in - now the light stays on all the time and won't go off, is there a relay as part of this system that could be the problem - the transfer case was supposedly rebuilt too so that could have something to do with it...