Can't help you with the Key but the transfer case gear selector leaver might be binding.
The transfer lever is not really sealed from the elements and mud and crud can get in there and mix with any gear to make it hard to manouvere.
I recently took the transfer lever apart and cleaned the housing and replaced the rubber O ring as this was shot and was seizing the operation. Unfortunately it involves removing the gear consul and then un rivetting the rubber gasket to expose the top of the gear box where the transfer housing is bolted onto of. But it gives better access than trying it from underneath. You can also grease the linkages as well as the nylon pivot washers for the size activating levers.


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