97 Explorer transfer case problem

To all,

My transfer case got stuck in 4 low. When I shifted to 4 high it got
stuck in an in between state and wouldn't go. Then I got blinking dash
lights. I banged on the shift motor, tried a couple of more times and
it went in to 4 high. This happened once before and a shop replaced the
shift motor and all was well. I tried pulling the motor and after
removing the bolts I could wiggle it and pull it from the transfer case
about 1/8th of an inch. What is the trick to removing it? I think I
either have a motor or limit switch problem. Could it be worse and be a
major problem with the transfer case?

....Larry