I was riding in woods and all of sudden 2/4WD light was flashing on the meter. I went back to my truck and came home. While test riding at home the flashing suddenly stopped and the 2/4WD selector button seemed to work fine. BUT!!! it was always in 4WD even if the the meter displayed 2WD. Removed the front right wheel and checked the diff case for any obvious trouble. What I found was the cracked (slightly) black plastic diff actuator body. It must have hit rock or something hard when I was riding in 4WD and couldn't go back to 2WD. Why damn plastic?! Couldn't believe Kawi used plasctic for such part. Took it off from the bike and opend it up. No internal damage. Gears were just misaligned and wern't meshing. Bought a non-working actualtor from ebay for $20 (instead of $250 for a new one from dealer) and just replaced the plastic body. Everything works fine now. Be careful not to lose O-ring that goes between diff gear case and the actuator. Also, somehow diff case oil leaked out when the actuator cracked. So, I filled up with "engine" oil with the bike tilted up at front (so that it can hold more).

 

Glad you got it taken care of. If problem ever comes up again here is what to check if no broken parts are found.

If it is flashing in 1/2 second intervals it is the engine braking actuator or it's wireing. If it is flashing in 1 second intervals it is the four wheel drive actuator or it's wireing. If it is flashing in 1-1/2 second intervals it is both. First thing to do is clean all the connections for the two actuators and coat with die electric grease. If problem does not go away it will have to be repaired at the dealer as it is a warrinty item. If not under warrinty the part replacement is pretty simple but quite expensive. The diagnosis is out of the BF manual so it is not a guess. Mine and several others have had the same problem, it is pretty common on the BF. Hope this helps you out.