SOURCE: 4 wheel low works but 4 wheel high does not.
sounds like the encoder on the side of the trans on the drivers side
SOURCE: 2000 yukon xl. 4x4 wont engage
My 2000 Yukon XL with 5300 engine had same problem at 115,800 miles in Aug 2006(I bought the vehicle new January 2000)...My GMC dealer did diagnostic and replaced a faulty 4WD Transfer Case Shift Control. (reading from the service invoice) It was GM part number 15709327. Cost for the repair was $41.48 + labor $74.13, total was $115.71...it now has 165,000 on it and so far no problem and the 4WD works when I need it.
SOURCE: 2000 gmc yukon xl 4x4 wont engage
see my posting re this at my name: rlf107. $115 in parts and labor solved for me, on a 2000 Yukon XL
SOURCE: 2000 gmc yukon xl 4x4 wont engage
$115 inparts and lobor fixed for me...see my solution posting by clicking on my name.
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