Stuck in Emergency drive and has trouble shifting

[74J20]

I just bought a 79 Cherokee Chief and I cant get the transfer case to come out of emergency drive. I have looked for vacuum leaks from the switch to the transfer case and don't see any (I'm not sayin there isn't one).
Also it has a heck of a time shifting from first to second I haven't had it going fast enough to get it into third so I dont know yet how that shift goes. So some times it shift pretty smooth, other times it wont shift unless I push it pretty hard then back off the throttle and let it shift or put it into neutral then right back into drive. Other times it just hates me and wont shift at all. I suppose I should also throw in there that this is a QT/turbo400 combo. Thank you ahead of time for any help.

[rocklaurence]

No input on the QTrac but does the TH400 have fluid? Check the fluid level.

[fulsizjeep]

http://www.tooldiscounter.com/ItemDispl ... gKIvPD_BwE

A hand vacuum pump is your best helper for hunting vacuum leaks. My QT page has some info that may be helpful. The tranny... T400 likes to be full of fluid. 1 quart low and they start to bitch. Another thing is the governor. May need cleaned or replaced.

[ghcoe]

Check the vacuum modulator on the transmission. It might be bad and can cause hard shifting as well as other shifting issues.

Check to see if the wire to the TC is attached. If it came undone it could ground and turn the light on.