np-208 engagement issues

[dieseltech]

Hi everyone, I was hoping someone can shed some light on whats going on with my truck. I have an 86 chevy k10 with a 6" lift and 37's. It has a 305 with the 700r4 and np-208. what the issue is, is that it doesn't feel like the transfer case is engaged all the way when in 4 high. when driving it feels like it briefly kicks out then back in again. last night I was driving home in a bad snow storm I was going up a hill when the "skip" happened and the ass end kicked out to the side like it fell back into two wheel drive. when in 4w hi the red indicator line isn't lined up with with the 4hi indicator like it does with the 2hi indicator. is there an adjustment for this or am I looking to rebuild my t/c. thanks in advance

Diesel