The vacuum only operates the diff lock, so if it is stuck in neutral that won't be it.
The high - neutral - low lever sticks out of the front of the seat box, but the linkage inside of the box has a couple of places where a loose clamp bolt could stop it doing anything. Then there is the possibility that there is something really wrong with the transfer case, although they rarely fail completely.
Best bet is get hold of a diagram of how it works (see Rave CD in shop, top bar above) - I'm not sure whether this covers the Stage 1 but the same box is in the four speed Rangerovers and 110s. You could also drain the oil and take the bottom cover plate off to get a look at what is happening (or not happening).
Hope this helps,
John


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