4 wheel drive not disenguage - 2004 Ford F-350 Super Duty

I'm sure you've checked the fluid level, I would first try bleeding the system to rule out any air pockets. It also could be a fluid bypass situation, especially if the master/slave are old or the cup seals have been exposed to contaminated fluid. The seals can become hardened over time and will not expand along with their respective bore when hot. The cure for that is replacement of the clutch master cylinder and/or slave. The master cylinder is a fairly easy task, but the slave cylinder requires removal of the transmission. Bleeding this system can be frustrating, but you should be able to find plenty of information about the process around the web. Good luck.

Sounds like the clutch slave on the side of the transmission is going bad or leaking.

might just need bleeding through more , check for any leaks etc on all connections,pipes etc

You said you replaced the battery cables, how come? Problems getting car started? might be a bad starter, not cables... if battery is good, cables are new, may be starter solenoid malfunction... the solenoid tells the starter gear to engage the flywheel, then release the flywheel once the engine rotates fast enough (assuming you let go of the key once engine gets going :)... or you could even have a worn ignition switch or faulty wire behind the switch (not so likely)

check your transfer case switch on top of your transfer case.they get stuck sometimes.

Make sure you park with the wheels straight. Sometimes the steering lock is real tough to disenguage if the wheel is shut off with it not straight. This vehicle is particularly tough at times. Next time you're in this jam, you should be able to yank on the wheel in one direction or the other and it will free up the ignition to turn on.

IF THIS IS THE FIRST TIME THIS LIGHT HAS EVER COME ON, AND YOU HAVENT BEEN PUTTING THE 4WD UNDER ANY STRESS, IT MAY JUST BE A LOW FLUID LVL IN THE TRANSNFER CASE. IF FLUID LVL IS FINE THEN THE SENSOR THAT SCREWS INTO THE TRANSFER CASE HAS TAKEN A DUMP, REPLACE, AND THE LIGHT SHOULD GO OUT AFTER THE ENGINE RUNS A CYCLE. MAKE SURE THAT THE 4WD ISNT PARTIALY ENGUAGED, PUT THE TRUCK IN 4WD AND DRIVE A FEW BLOCKS THEN STOP DISENGUAGE AND SEE IF THAT WORKS..

that would be the lock for the front axle not disenguaging all the way. it used to be you should do like you did put in reverse, then move forward. look in owners manuel it may be a normal condition.

vice versa.. speedometer started acting up and caused the abs system to disenguage... eratic speedo replace the vss....vehicle speed sensor on transmission

I had the same issue with my truck, the switch was the problem.

I solved my issue by process of elimination which started with the switch,,, easiest thing to replace first.