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Hey, I think I just got over the Service 4wd problem. There is a tech service bulletin out as of 2008,

(Bulletin No.: 05-04-21-003C) they suggest replacing the wire harness to the actuator on the Transfer Case due to wear and shorting issues. In other words, this happens when it's wet outside.

I checked the price of the first connector (female side only) on the harness and found it to be about $70.00 not much compared to other parts involved (dashboard switch on amazon =$50, Actuator on Transfer Case =$???.00) Found the same price on parts house web sites and at the Chev parts window. I also got to see the size and shape of the connector so it was easier to find under the truck. Without making any purchase yet I got under the truck to explore and found MOISTURE in the connector, it hangs around after a wet day. Inspection of available wire harness showed no adverse wear or cracked insulation. Bottom line; I used WD40 to displace water and coated the connector faces with Di-Electric Grease. Been driving in style for a while now with no codes or service indicators on the dash. Sometimes simple works.

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