I almost forgot to tell all of you aparently this has been a problem part on the H2's as well..and no it isnt the same part number.
It functions the same but is a totally different part number.
When I first talked to the service parts guy he told me about the encoder because he has ordered them for the H2's. I wonder if they are made by the same manu for the H3 and H2's I read somewhere earlier on this thread that there is an optical sight in them that goes bad.
This encoder tells the xfer which range to be in. 4wd hi low or neutral or 2wd. But when it fails make all functions useless except 2wd.
If you crawl under the drive side of the H3 and look at the back of the tcase you will see it hanging of the back/side.
M
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