1999 Chevy Blazer 4WD not engaging

I bought a 99 chevy blazer about 1 year ago and about 2 weeks ago the 4wd stopped working. I used the 4WD normally on snow and ice covered road almost all winter. About a month ago i started noticing the 4WD would have trouble engaging.(lights on push button would click 3-4 times before engaging) then about 2 weeks ago it got stuck in 4WD for a day and the next day i finally got it to click back into 2hi. It will not go into either 4hi or 4lo. I looked at the actuator located under the battery and it look clean and being electrical the boot didnt appear to be torn. Last week i took it to the dealership where i bought it from where i have a warranty through them and they told me it was gonna be $85 to look at it and after looking at it they told me it was the Encoder Motor and it would be $750 to fix and exteral 4 wheel drive parts arent covered under my warranty only interal. I really dont think that it is the endoder motor because these guys have screwed me from the get go. If anyone out there could help me i would appreciate it. I need the 4wd to go to the fishing places i want.
Thanks,
Mike

They could be right.
But it takes proper testing with the proper equipment to test it out.
Did they give you any codes or say what they checked or did not check?
Which transfer case do you have?
233 -243 or a 246? Does the buttons have auto button on it?
Does the front axle lock in?
If you do not trust the dealer I would find a good repair shop to check it for you or..
If you are going to try to fix it yourself let us know what transfer case you have and what test equipment to start with and what codes the dealer found or the results of there test.

To tell the truth i dont think the dealership even looked at it. All they did was told me that they found a fault in my encoder motor. It is not like i have a service 4wd light on. It is the 3 button setup with 2hi,4hi and 4lo with no auto switch. I am unsure what type it is but i think i remember hearing 243. I really dont know how to go about this because i dont feel like spending all that money if it is a unneeded part. Thanks again. Mike

The 243 you can ground pin 13 on the diagnostic connector and get code.
Also look in the how to section for a article on the 243 transfer case repairing.
Good luck.
MT

The 243 you can ground pin 13 on the diagnostic connector and get code.
Also look in the how to section for a article on the 243 transfer case repairing.
Good luck.
MT
Thanks for the help MT i tried to ground pin 13 with the ignition in the on posistion and the check engine like was lit like it normally is didnt blink or anything. If there is any other way you could help me i would really appreciate it when the car is running my engine light isnt on or anything. Any help would be appreciated.
Thanks for help
Mike

Did you check the 4W buttons for flashing a code?
Here is the how to link in case you could not find it.

http://www.automotiveforums.com/vbulletin/showthread.php?t=572914