I found this
Sounds like the Centre Diff Lock light that your talking about not the gear box
hope this post helps you with your issue
Centre Differential - Orange flashing light
The transfer box (t-case) houses the centre differential, permitting drive to both front and rear wheels. On the super select panel it is represented as the central orange colour lamp, it is labelled "C/D Lock"
The manual indicates that there is a switch connector, from the centre diff, with a yellow/blue wire (which then changes to brown/black) and connects to the 4x4 ECU. If you have a different year, or a rear diff locker the wiring is a bit more complex.
If you have the orange flashing light it is most probably an electrical issue with the centre differential detent switches on the transfer gear box (t/case), possibly a broken wire or fouled switch, could also be a poor connection due to mud/etc. There are five centre differential detent switches on the t/case.
First thing that I would inspect is the swiches under the t/case and spray some WD40, looks like you have a short some where.