i had the same problem with the shifter arc. first i took the lever off the tcase and straightened it out (instead of having the bend toward the tcase). i had to cut and splice the linkage to make it 2" longer (no body lift). then i twisted the shifter end to be inline with the tcase (about 1/4" twist at the end where the linkage goes in). the linkage on the tcase end was on the inside on the lever instead of the outside like the factory. then i put both the shifter and tcase in 4 low and adjusted the shifter end till it just slipped in and out with no resistance.
this gives you 4 low, but 2 hi is like 3/4 the way out. i had run it like this for 8 months and no problems. i did have the tcase grind when in reverse and 4lo, but the reason was i had bad motor mounts and it was pulling the tcase out of 4lo.