I had the same problem on my 90 K1500, it was the 4 wheel drive actuator unit itself. Bout it at the local parts store for 30 bucks and installed it in 10 minutes or less - and vavoom! 4 X 4 back in business.
Shifter vibates when engage but does not work
I have the same problem with mine i checked my acuator and it did work. took it back to Orileys and the guy said it was a switch in the transfer case that triggers it, but of course he gave me the wrong one. UGH
Check the fuse for the actuator, this burns out when the actuator fails
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