I don't have the books here, but for the 95, as I recall, the procedure is this:
Loosen the trunnion bolt and make sure the rod moves in it (i.e. break the rust bond well, and free it up). Then, from beneath, shift the transfer case into 4 low, making sure that the lever clicks all the way in. Then, from above, shift the shifter into 4 low. Then tighten the bolt. I don't recall any spacer being mentioned, but the idea behind that would be to make sure that there's still a little room left in the lever after the TC has clicked in, to compensate for any flex or stiffness. If you do it right and the linkages are free, it should work without the spacer.
Not in the book, but when you do this, you should be sure that the lever moves freely. The bushing that passes through the hump tends to get stiff. If it's stiff, cycle the lever back and forth about 50 times, until it's nice and loose before proceeding.