Mystery wires to transmission

You seriously just twisted two wires together at random and expected good results? Kinda lucky they were just the 4x4 indicator wires.

Movie: Down Periscope.

Character: Seaman Nitro.

Flash, smoke, burning odor.
 
you rock! yeah, I think it was a combination of wishful thinking and coincidence that made it seem like it related to my engine issue. Regardless, I am happy I know what they are now. I do have one more question: My part-time light seems to be related to vacuum, as it will come on/go off depending on whether I am in the throttle or not. Does that mean I have a vacuum leak? Also, when I change out my right axleshaft and get rid of the vacuum shifter, is there a good way to rig up my 4x4 lights so they work?

convert your t-case to the newer electric switch and splice that into the harness for the lights.

run the vacuum lines from the existing vacuum switch in the T-case to the light switch mounted on the firewall, bypassing what was the CAD.

If the 4WD indicator lights come go on/off with the throttle position yes, you have some sort of vacuum problem, or the switch is old and not reponding to light vacuum like it should. Or the CAD actuator has a leak. Lots of possibilities. A vacuum leak could explain your rough running.
 
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