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I have a 74 and I don't have any such light. If you are wheeling in the dark just take a flash light and shine it down on the transfer case lever and then you can tell if you are in 4 wheel drive or not! Just kidding.
I think there is a little light under the dash right below the ashtray and above the shift lever. Mine was not wired up so I just took it out.
I don't know about the 2nd gen Blazers, but on the 3rd gen, there is a light in the instrument cluster. All it does is indicate that a switch has closed in the transfer case. I'm not sure that the 205 and 203 even had any wires coming out of them.
Where would the wire hook up to a 208? I had my tranny done around five years ago and the light hasn't worked since..........maybe they just forgot to plug it back in????
Yuppie light or not, I love that light. I'm very forgetfull when it comes to disengaging the 4wd. Not to mention the 205 shifter doesn't really tell you much between 2 hi and 4 hi. There's a spring loaded ball like switch that mounts on the t-case. The ball makes contact with something inside the t-case shorting the two wires. The switch just screws in in the t-case. I don't see why you couldn't make your own by just getting the switch from a salvage yard and making your own light from a LED and a 1k resister (12v bulb would work too). I had this in my 79, 80 and 87. I'm not sure what year they started this.
BTW- 79 had a 203, 80 had a 205, and the 87 had a 208. My 87 K5 now has the 80 205.
75 didn't have a light as far as I'm aware. My 75 has no wires or bracket to hold the switch. Now somewhere around 77-78 the 203's got a light to let you know the center diff was locked. it is controled by a button on the shifter. My 79 has it. The button looks pretty close to the button from the brake lights under the dash. it has the same locking collar deal to adjust it that always gives it up after a few years. Small radiator clamp fixes both the shifter as well as the brake light switch.
Found out that I've got one when I pulled the dash apart last week. Figured I'd try to locate the sensor this weekend to see if it will work. One of the many pleasures of a used 4x4 is the neverending chance to fix things!