4x4 system failure. or actuator or controller?

Push button 2005 manual car dunno the year of the case bought used. All original on this one.

So after Denmark where I filled my transfer case with water and drove for a few hours before noticing, I changed the chain sprockets this week. pictures later in another thread. 
But putting the case back together was no problem, case out and back in. I did it way too fast to notice if the box was in 4wd high as it should have been, but havent had any problems with that before and have managed to get it back in sync usually.

But this time it is stuck in 4wd. 
I could hear the actuator pulling and unhooking the sensors made the case go out of 4wd light but front shaft still felt like engaged in the case. hubs disconnected OK.

So took the case back out. Actuator was at a strain so could not get the small cog out before it was separated.
Checked everything and checked the manual while putting it back together.
did it three times or so tonight but cannot see anything wrong. 
While manually pulling the shift fork it feels like i can put the case in all three modes ok. 
put the case back in the car and now I cannot hear any actuator and the 4wd blinks and beeps but not fast, normal tempo.
Beeps and blinks 2 sec after the ignition is on, no need to start the car.
Unhooking sensors below while it beeped, no difference.
Checked for vacuum, and there was "plenty" in the lines long after car had been running.
Checked all connections and they are all nice and clean, sprayed them all anyways.
Would there be a fast error blink 5 per sec if the controller and/or the actuator was faulty?
Would it be silent if the fuse was out?

what more to try? 
- unhook position sensors with car off? (done no change)
- short the white connector on the vacuum? (done no change)
- open the acuator and see how much water is inside? (it was nice and dry)
- swap the actuator, I have a spare? (no, the spare was not ok)
- I have no spare position switches (well I made one work)
(edited in my own replies)

Annoyed as now is a long weekend and I should be out and about overlanding. 

fiddled a bit more with it. seems it is now in 2wd, hubs and transfer disconnected front drive shaft.
same alarm but noticed a pattern, beeps the second I switch on the ignition then 4wd and lo light stay on for two sec as normal test, then 4wd light blink 2-3 times and stays, then lo light just keep on blinking.
disconnected pos sensors no change.
disconnected actuator then no beep, blinks fast, error.

My guess then is it could be the actuator, and the controller seems OK.

checked a bit around vacuum lines, could not see anything but it has disconnected the hubs so might be OK as when it drove last.

 I will open the actuator first thing tomorrow.

I can't offer any meaningful help as I've never needed to take one apart, but I do sympathise with wanting to be out using it instead of in fixing it!

After reading the wiki (again) and fault finding I tried changing one switch and tried to short and unhook the other one. (push button transfer cases have two switches and the wiki seem to only describe one switch.)
no apparent change except at first there was a period of no response only one blink after pushing 4wd, no flash no beep. but after fiddling more it is back to failure mode again.
edit: Also measured the voltage here there is 12v supply to the switches.
edit: And the 4wd fuse 20A is OK as I expected.  

also tried unhooking and shorting the white connector for the vacuum switch, no change.

So opened the actuator I had in backup.

looked awful but actually worked just fine when dismantled.
Tried to clean it and see but gave up on it.

So opened the one on the car and it was very tidy inside, could not see anything apparent and I can hear it trying so I think it is OK. put it all back together but still no change.

So it worked fine before I dismantled the transfer case.
Wich is why I at first had the case out and open. cannot see what could be wrong, cannot see what is broken elsewhere.

I still have the low geared transfer case that whines madly I could put in the car. then I get to test the cars systems and the actuator. guessing that is next up now.

Whiny transfer 17/87% low geared back in.
Now it will not go into 4x4, works fine in 2wd.

when I press the 4wd i can hear the actuator.
blink 4wd one or two times but then stops. no 4x4.

faulty controller maybe?
or would I hear the actuator trying and measure voltage at the switches wiring if it is bad?

Done for today. been at this for days now.