Blinking Diff Lock indicator
Today my instrument cluster is flashing yellow on and off for the diff lock indicator while in 2WD. If I touch the 4WD shifter and pull it backwards, the blinking stops. As soon as I let go, it's flashing again. What should I be looking for in order to make this stop?
The solution is to go to the
The solution is to go to the online parts websites like MegaZip, Partsouq or Amayama and enter your VIN (or in my case, the chassis number). Then narrow your search to "transfer" and look up the two sections that show the detection sensors for the VSC. You have to replace BOTH sensors... one on the transfer case, the other on the transmission. There is no way of telling which one is broken. The parts diagrams clearly point out which sensors you need. In my case, the part numbers (for an automatic transmission JDM 2000 turbo model) are MR399237 and MR388765. Easy enough to replace from underneath. I used OEM parts. No more orange light on the dash, no more rough shifts. Some people say that you have to replace all 5 detection sensors but those people just wasted their money.
This is probably what you did - waste your money!
For the flashing orange (diff lock) light there are two "sensors", or to be more precise, two switches, which can easily be tested with a continuity tester, no need to replace both, unless both are defective - it's also possible for the problem to be a broken wire - which is what it was on my iO.
Last, but, by no means least, it can also be caused by a mechanical issue internal to the transfer case - if you want to "fire the parts cannon", it's your money, your choice, I'll take a little more time, it doesn't take long, maybe fifteen minutes, to test the switches.
It's called firing the parts cannon.
It's called firing the parts cannon - sometimes you get lucky, sometimes it gets expensive - you were lucky, and the reason I'm pointing this out is because you tried to belittle the ones who chose to swap all five "sensors".
Think about it - a broken wire, you'd still be swapping parts, internal transfer case problem, you'd still be swapping parts - you probably spent twice the money you needed to, changing both switches when only one was defective - all I'm saying is test the part, confirm that it's defective before you replace it.

Have you tried searching the forum?
Seriously - prior to you asking your question, the very first discussion in this forum section was about the exact same problem.
In that discussion I explained how the system works and where to find the documentation needed...