Phil,
No problem. I assume it is the actuator, if the plug to the actuator is getting 12 volts when in 4wd.
The way this actuator works, is it is a sealed chamber that gets heated by voltage. When it heats, the pin in the end swells and pushes a shift fork in the front differential. The shift fork engages a spline on the passenger side of the differential, and boom! you have 4WD.
GM offerred an upgrade to this actuator that is a motor instead of a heated device. However, it requires a small harness addition, a spacer, and a new actuator. It is about a $150 to $200 option.
If I were you, I would buy a new heated actuator. They are available at most auto parts stores, and are about $90. They are also on eBay for about $55 plus shipping.
http://cgi.ebay.com/ebaymotors/ACTUATOR-4X...sspagenameZWD1V
These are very easy to change - just thread out the old one, and thread in a new one.
Let us know how it goes.
Dan