Thank you guys for the help! I went through the manuals and double checked everything and it all seemed to be where it was supposed to be and how it was supposed to be. Today I had some spare time and went down to the junkyard and got out another 4WD switcher from a 2004 LE Platinum and plugged it in to see if anything would happen,m and something did happen!
The 4WD light no longer goes on once I switch from auto to 2WD and my dash indicator lights up properly as well when I'm switching through modes. I'm still quite skeptical if the 4WD engages or not, I'll have to test that out this weekend and let you guys know!
Again thank you both for the responses, they've definitely helped a ton and I know more about my car now!