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Normally on a 205 there is no adjustment of the linkage at the lever itself or the transfer case. The lever connects to the linkage on the case with a small round rod that sits through the steel plate that connects the two rails. It is possible that the rod or the steel plate has worn enough to allow it to hit the trans tunnel cover before engaging. If that is the case the simplest solution would be to replace those two parts, but I don't know where you would get them.
4 low is all the way up on the 205
mine isnt marked and i had to find out myself..
they are tricky too as far as
-being on level ground
-put foot on break, tranny in neutral, use finess
-try to engage while rolling
-clean shift rails
Since 4HI is all the way back, odds are like the other folks say, its hitting something. If not the floorboard, then you may have a stick or something underneath between the shift rail and the housing.