It's good to hear that you can at least drive with it on, hopefully I can do the same until I figure out the fix. I've done a lot of reading in the repair manual and it seems like the TOD ECU just shuts down 4H completely and only powers the rear wheels if it detects any kind of problem. 4L still works fine - is that because it's a manual engagement vs. a computer controlled engagement?
Is there a real chance that a sensor/electrical problem with the TOD system could cause the transfer case to explode (or at least to break and not function)? Or is TOD smart enough to not let that happen?