1999 flashing 4x4 lights help

I have a 1999 limited 4x4 with 155K miles. 4x4 lights are blinking and will not turn off. The button on the 4x4 shifter is not pressed in and shifter is in 2wd position. Now when I back out of the driveway the car goes about 25 feet then feels like the brake is engaging. Does the same thing when I put it in drive, goes about 25 feet and then starts to bind-up or something. Problem started when the car was cleaned and the button was engaged by mistake. The car was backed-up about 10 feet then pulled forward about the same distance. I have tried driving it slowly around the neighborhood to engage the 4wd but the lights just blink and it starts to bind at some point after only short distances. It is not driveable in the currnet state. I have also tried manually shifting into 4wHI and 4wlo while sitting in the driveway without any apparent problem. I am fearful of causing additional damage. Any help anyone can provide would be greatly appreciated.