Well i figured it out. A bolt on the 231 was loose at the bottom shift tab, tightened it and it started working properly as far as shifting. Then i followed this procedure i read online, put the trans case in 4 low, crawl under the rig and loosen the bolt in the trunnion on the shift rod (you'll see what I mean when you take a close look at the shift linkage) and make sure that the rod can slide freely in the trunnion.
Now make sure that the transfer case range lever is fully engaged in 4 low. Retighten the trunnion bolt, and you're done.
This didnt work for me, when in 4lo i was in 4hi. So i did it opposite and manually put the lever and T Case in 2wd and installed the lever on the trunnion bracket and tightened it down. I now have full range of the transfer case and it goes into 2 hi - 4 lo perfectly.
However a new problem has arose. At around 60 i get a vibration. It is a quick vibration, not like a broken belt in a tire but more like something in the drivetrain. Also i get a constant whine, it sounds like a power steering pump with no fluid. It is louder at slow speeds and on decel under like 20 mph but is constantly present at all speeds. My grandfather rode with me(hes a retired diesel mechanic) he said he doesnt have a clue whats causing it(he was inebriated though). I feel like it is coming more from the front of the vehicle, it sounds so much like power steering that i want to believe that is the cause in fact, but it doesnt get louder when i turn.