Are you certain you had it fully engaged in low-range? Sometimes you have to give it a good old push,,especially if prior owner never had low range engaged. Did you do the trail in low with the alarm on, or run it in high range? Is this a manual or auto?---if auto, when you engaged low range did you put the gear shifter in drive or select a lower gear?
I'm not 100% certain oln a D1, perhaps others could comment. My gut feeling would be that it wasn't fully engaged in low. Don't take this as an insult,,, the transfer cases can 'stick' if not engaged for long period of time. This also happens w/ the CLD. It could be a blown solenoid on the t-case, but in this case you would clearly not be able to engage low range,, ie: you would know you were not fully engaged. Did your 'check engine' light come on, or just the audible alarm?
well it did engage in low well at least I could drive in it. I will try it again tomorrow to make sure I had it in all the way. no lights came on but then again I dont even know if all the lights work. Since none comes on when its in low.