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If this is a 4 by 4 and not an AWD, there is a switch on the left side of the steering wheel (on front of dash) that you can turn from two wheel drive to four wheel drive. If it is AWD it is 'always' in AWD.
Is your battery light on the dash on? When my alternator died, my hubs were auto locking due to low voltage in the 4wd selector even though 2wd was selected. The problem corrected itself when I installed a new alternator.
im not sure if a 2000 f150 and a 2000 f250 have the exact steering column,but incase it is then check at the base of the column inside and you may see a triangler shape bracket that the shift cable connects to,there will be 2 torque screws holding the bracket to the column,either a t-20 or t-25 not sure,they may be loose so the shifter will be sloppy...my 2000 f150 had that problem and i stumbled upon it,it seems to be a 2000 year issue...about the manual hubs,try locking them in and drive forward and reverse very slow a few times,if they lock in then they are sticky and it takes time for the spring inside to push then together.lock the hubs in first,then after a while shift to 4x4,because if they are just sticky,it may strip the teeth on the lockouts from the axel turning against the inside of the lockout.
Test it by setting the rear end up just barely off the ground with some jack stands and setting the hubs to lock (if they are manual). Put it in 4 wheel and try to drive away. If the vehicle does not move then very carefully have a helper check and see if the front drive axles are spinning while it is in 4 wheel and in gear while running. Spinning axles... hubs are at issue No spinning axles... Transfer case issue.
I had this problem before. My mechanic fixed it though. He said that the 4 wheel drive operates on a vacuum system. He said he could replace it with the same type but I would probably have this problem again. So I had him put on manual locking hubs. I havn't had any problems yet but I have to get out and turn the hubs by hand.