Problem with 4wd

I just picked up a 2000 Limited. The guy I got it from has changed the transfer case, actuator and the button on the 4wd stick. When you start the truck the lights on the dash indicator flashes in the center and the 4 wheel lights stay on. I haven't driven it but he said the 4wd sounds and feels like its engaged. If anyone has any ideas on where to start looking to fix it, I would appreciate it.

Thanks in advance.

 

when he swapped it to stick did he reconnect any of the wiring? I'm not sure what all would need to be done though...

 

I assume he did because, he is the service manager at my local Toyota dealer. Is there a way to check the actuator to make sure its getting the signal to deactivate 4wd.

 

that's strange if he says:

I mean has he not actually verified it is engaging/disengaging?