Just looked at my service manual, they say the front diff assembly needs to be removed before the actuator (2wd/4wd) can be removed. There is a shift rod inside that is operated by an electric motor. Have you changed the diff oil and cleaned that out first? A good cleaning is easy when compared to removing the front diff. I would give the diff a thorough cleaning than if it doesn't work, grab a service manual and take the diff actuator apart. For some reason I am still thinking the actuator may be sticking, thus the thorough cleaning of the front diff. Have you tried the diff lock mode? Does that work?