I recently purchased a 1993 300TE 4matic with 136000 miles. The transfer case was replaced last Apr. 04. And I have recently replaced the brakes and rotors and stabilizer bar. Except for some hard shifting by the transmission the car seems to perform very nicely. However, the 4wheel engaged light in the speedometer comes on consistently at 75 MPH and stays on above this speed, then goes out below this speed. It does not matter if I am going straight or in a turn, and the roads are dry and clear this time of year. The light will go out at speeds above 85 MPH.

Does anyone have any suggestions about what component to look at to correct this problem. Am I doing harm to the 4 matic system by driving at these speeds with the light on.

Please help if you can.

dennisol