Did they actually look at it or just guess at it? Talk to a transmission shop, this is something they should handle. I may be wrong, but I believe he is talking about the switches in the dash to actually change it into 4wd. If is like some of the newer GM circuit boards (like the AC control heads), It might just be shot. You could also buy the transfer case from someone like Scoggins Dickey (
www.sdparts.com. New GM T-Cases come with a 2ry/24k warr (parts and labor).
Here is a backstory on the circuit board comment:
My wife drives a 99 Malibu, the AC control head has failed 6 times. Twice under warr.
My wife's right side taillight circuit board has failed once.
My 98 GMC AC control head has failed 3 times, twice under warr.
My 98 GMC taillight circuit boards have failed (very, very common)
My stepmoms's 99 Tahoe AC control head has failed 4 times, once under warr
Also her tailight circuit boards have failed.
All of these are built the same with very cheesy construction.