2004 Jeep Wrangler Unlimited, stuck in 4 high?

I just bought a 2004 Wrangler Unlimited. When looking at it, I noticed the 4 high/low indicator on the insturment panel wasn't working. Just to make sure it was enganging, I marked the front drive shaft, put it in 4 high and low, drove a few feet and made sure it spun. Recently though while driving it aroung town (in 2wd) it would feel like it was in 4 high, especially in parking lots, tight turning situations. So,again while in 2wd, I marked the front drive shaft and drove a few feet....it is turning. Is this normal?? Should it spin in 2wd and it's just an indicator light out, or do I have a bigger problem? Any adivce would be appreicated. Thanks