Test Drive Failure

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Clutch inspection cover should show you what adjustments are needed. Adjust the master and slave, rebleed first, then it may be an old soft line absorbing the pressure
 
Does it shift while the engine is off? If it will look to the clutch and related parts. It it won't then look to your shift linkage or transmission itself.
 
Have you recently removed the stick?
 
Dash lever all the way in is 2wd, pulled all the way out is 4wd, and in the center is nuetral. Hubs have nothing to do with the transfercase being in 2wd or 4wd.
 
Go underneath and check the lever and linkage, have someone move the dash lever while watching the 2/4 selector shaft for proper movement and engagement.
 
The reason why I ask is that in a floor shift arrangement if you accidentally move the shift rail [?] on either the R/1 side independent of the 2/3 side [or vice versa], you can get the lever back in but can't select those two gears. Did it myself. This may be the your issue, though those with more knowledge may correct me seeing as the J30 column box has the side linkages, not a top-plate setup.
 
All the way in equals no go. All the way out equals me driving. Hubs were just mentioned for clarity. Center is neutral...maybe I need to adjust the lever mechanism?

This one. My LPB is overdue for a re-adjustment. Disconnect the rod at the t-case, shift the hi-lo lever on the t-case to hi, see how much the lever is off (making sure correct distance from the firewall is maintained) and adjust until you can drop the pin back thru the end of the rod without having to move the arm or the rod at all.
 

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