2000 Ford Explorer 4HI and 4Lo lights flashing

I have a 2000 Ford Explorer in which the 4HI and 4Lo lights are flashing. Was going on a 100mile trip where the truck would lurch and eventually stall the engine. Had it towed and fixed - the oxygen sensor had been severed by a rusted heat shield. Ran great for 2 weeks and when towing a boat to a lake the lurching and stalling occurred again. This time I noted oil on the tow chains on the boat and trailer, as well as oil under the Explorer. The tranny and engine oil levels where just fine and color was well. I am afraid to drive anywhere with this vehicle. I have an expensive fear it is the transfer case.



Any ideas about my situation?

You’re going to have to find where the spraying oil came from.

There MAY be an electrical fault at the transfer case or perhaps the switches are setting off a code.

The lurching and stalling may not be the result of a (possible) faulty transfer case.

There are a variety of shift modules and speed sensors and switches involved and gets a bit complicated so I’ll bow out and leave this to the pros.

I was kind of thinking these things myself. Still haven’t figured out where the oil is coming from. I think it is from the transfer case but can’s see where that would be.