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Sounds like the 4x4 unit has not been used for a while. This is a common problem. If cleaning and reinstalling the electrical connectors dose not solve the problem then, try this procedure before replacing the control module.
my 89 light is always on to,but its not in 4x4 mode,its a vacume problem.the shifter should be in 2h.to test if its stuck in 4x4 turn the wheels to the left or right all the way and try to move a little if it feels like its binding its in 4x4.if not you ok.
My GMC Jimmy '01 would slip from 2-wheel to 4-wheel drive while I was driving. First time it happened my mechanic replaced a small part. This last time, he couldn't find anything wrong so he popped the 2-4 out and disconnected the 4-wheel drive. Now I don't have the problem.
take the four wheel drive actuator out of the front differential let it hang while still plugged in and have somebody watch and see if it retracts when the 4 whell drive is switched from 2 to 4 whell drive. If not then accuator is probably bad.
the 4 wheel low light will usually only blink because the low gear is meant for a very slow speed and usually wont activate with the vehicle in motion i would have to say the sudden switch to 4x4 though would probably be a short in the wiring some place