"Swapped the lines around" sounds fishy- vacuum on the lines work at different times (controlled by the vacuum switch on the transfer case) to lock or unlock the axle. If you switch the lines, the vacuum for locking will be applied to the unlock port, and the vacuum for unlocking will be applied to the locking port on the shift motor. Maybe I don't have the idea of what you tried- not sure.
Check the shift fork inside the shift motor housing. We had one break, result was exactly what you decide (indicator light works but axle doesn't engage). It was very easy to replace, just keep track of the circlip positions for putting it back together. Driving a 1990 since new, and a second 1990 bought by my daughter, the only problem with the axle disconnect to date has been one fork replacement. I really prefer the disconnect axle for the lack of vibes- wish my wife's 2001 had one.