By your comment that you were going to pull it apart anyway sounds like you can swing spanners when needed, so your probably across the basics already.
Both the hi/low shaft and the locking shaft have ball bearings to give the notchy feel as you move the levers. Both systems have grubs with springs to apply pressure and both grubs can be adjusted from outside the case at different locations.
As there are grubs for the spring loaded ball bearings there are also grubs for the selector fork but no springs, just like when you want to attach a pulley to an electric motor you wind down a grub to engage the flat on the shaft. So yes, a loose grub on the hi/low selector fork will do it for the hi/low.
From memory the diff lock selector fork has a different arrangement for holding it on to the shaft ie a spring holds it in place allowing a little movement, no grub.
You say the box was apart before you bought it, and the guy/gal highlighted the hi/low repair issue, so its safe to assume they are honest and that the diff centre is probably OK. Little point in fixing the hi/low issue otherwise
There are two other issue with the ball bearing/spring/grub system used to ratchet the shafts. They are fairly obscure.
I forget which way about it is, but the grooves on one shaft are quarter inch and on the other shaft they are five eighths. You would expect a quarter in ball bearing for the quarter inch grooves and five eighths ball for five eighths grooves. But I found five eighths used in both grooves. It meant that the five eighths ball would not fall into the quarter inch groove and gave poor engagement ie popped out.
Invariably as you open your casing a ball might fall out. So you put it aside to be re-enstated near the end of the job. Your casing is all now back together, maybe even back onto the gearbox. Ahh, that ball bearing! So from outside the casing you take out the grub with a hex key, and remove the spring with a magnet. You pop the ball down the hole, followed by the spring and then the grub. You then spend a frustrating time trying to adjust the grub to get ball bearing engagement with no success. On re-examination you find the ball jammed at what seems to be the bottom of the bore hole. Seems the hole is either tapered with another chamber further on for the ball, or miss drilled. So what I did before putting the casing back together was to leave the grub and spring in place and re-instate the ball into its hole from inside the casing just before you re-insert the engagement shaft.
How many kms on the vehicle? I ask because you may need to check your thrust washers in the diff. And if you are in there consider replacing the two pin bearings with a solid unit.
Cheers.
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