Grandaughter's vehicle... I'm a GM/Dodge guy, so limited experience with Fords!
The shifter motor was replaced. Started as an intermittant problem, but became worse as time went on. Now happens all the time. In Low, it is 'drivable' (not a good idea, but it works), but in high and auto all one gets is a grinding noise and no motion.
I removed the shifter motor, and manually selected high and got the same symptom, so the shifter motor and controls seem to be not the problem.
Looks like the transfer case itself may be bad, but my limited experinece says best to ask to see if someone has a better idea.
(Yes, I do have a full shop and lift, no shop manual for the Explorer, would love a link to a downloadable shop manual if one exists)
Side issue: the transmission shifter is 'off' by one notch too! First thought was a motor mount, but it's cable activated, and the mounts look OK. Grandaughter thinks the two problems are related, I'm reluctant to accept that. Any ideas on this one too?)