My 97 Jimmy is shifted into 4hi and will not switch to 2hi, the lights flash and i hear a clicking but it wont shift

The reason the light is flashing constantly is because the vehicle is sensing that four wheel drive(4WD) is not working. These 4WD systems use vacuum from the engine to engage/disengage to front axle. The vehicle probably has no vacuum going to the front axle, which would not allow the 4WD shift to complete, which would then leave the light on the dash flashing.
First thing to check is that the vacuum actuator on the firewall is working as it should.

In the instrument panel fuse box fuse # 8 CTSY LP 10A ,that's for the dome lights, fuse panel is left side of IP. What are you talking about 4 who drive won't light up or work ? 4 wheel drive ? Do you have two speed automatic or two speed selectable ?
Switch Indicator Lamps Do Not Light - One or More ? Check fuse #15 IP fuse box 10A 4WD . This is for two speed auto !

Circuit Description

The indicator lamps circuits consist of 5 individual lamps contained inside the mode/range switch assembly, they are AUTO, 4WD, 2HI, 4HI, 4LO and NEUTRAL. The AUTO, 4WD, 2HI, 4HI, and 4LO lamps are contained inside their respective range button. When the ignition is ON, the transfer case shift control module illuminates the indicator lamp that corresponds to the current ATC gear position by providing a ground through a current limiting driver.
The transfer case shift control module flashes each indicator lamp after a shift has been requested and will continue to flash until the transfer case shift control module can complete the shift. After a shift to AUTO, 4WD, 2HI, 4HI, or 4LO is made, the transfer case shift control module will flash that indicator lamp until the transfer case shift control module receives a high voltage signal on CKT 1695 from the front axle switch.
A solid state circuit located inside the switch supplies ignition voltage to the lamps. The solid state circuit also receives voltage whenever the headlamp switch is in park or headlamp position. When the solid state circuit receives voltage from the headlamp switch it will reduce the voltage that it supplies to the indicator lamps, dimming the lamps when the headlamps are ON.

sounds like a bad acuator drop by a AAMCO they can diag it and give a free quote too

My guess is that it is probably the actuator on the front diff. It may also be the buttons. I had the same problem with my 1999 silverado which it turned out to be the actuator.

Try commanding the drive ranges while in netural cycling them. This may normalize the controller that senses the position from the encoder motor assembly. There maybe a procedure for that in a service manual.

You should be able to put in 4x4 while in drive less than 35mph. Mine had a switch to turn to engage or dis-engage.

vacuum leak or vacuum locker solenoid problem. a great way to check for both is to remove both vacuum lines from the solenoid (located on firewall above destributor), and put a connector between them, push the button on the dash and see if it locks in.

do the lights work on selector buttons if so check actuator on transfer case may be bad or replace selector switch i just did and my four wheel drive works sometimes

it is either the control switch or the actuator. look if light is flashing on push button switch. if so it is stuck. you can check actuator on front axle, to watch and see if it is moving.

You need to see if the transfer case engagement motor is defective.