Hello all! I think the answer is encoder motor but I wanted still ask before I spend $120 and an hour under the van.
I have a 2001 AWD but it really is a RWD at this time. I have no codes and the relay under the dash clicks once when I turn on the ignition. The ATC fuse is OK. The AWD light is off but working. I can force an error when I run up a steep hill and let the rear spin for 10-15 seconds. With the brute force method of letting it spin I get the expected C0374 error. So I came to the conclusion that the control unit is at least somewhat alive and working and the sensors are fine too. Seems like the encoder motor does not engage the T-case in to AWD.
Dear wizards - is there anything else to try or should I order a new Transfer Case Shift Encoder Motor?