Got a little time this afternoon to tackle the transfer case shifter. As of this point, I had not been able to shift the transfer case into N(eutral) nor L(ow). Got underneath and sprayed PB Blaster all over the joint and the transfer case lever areas. I then went from the top by removing all the console, shifting plates, boots, etc...
Was able to spray PB Blaster inside the shifter pivot point, still no movement. Got the shifting rod finally disconnected and was able to shift the transfer case from that!!!
Then got a cheater bar and worked on the shifter itself. I will say the inside the 'cup' part of the shifter looked brand new, there was zero corrosion. The plastic shims (for lack of what exactly they are called?) looked perfect! Started working it back and forth multiple times. It loosened a little bit a first, but then no more. I applied some red grease inside the cup area (not too much) hoping it will work it ways into the pivot shaft. Reconnected all the linkages, replaced all the consoles, replaced the shifter light bulb and viola, we now have 4L with center diff lock and ABS light!! Yatzhee!
I ordered the extension from Landcruiser Products with the hope shifting into N or L will get easier!