On my 01 cherokee sport is my 4wd panel supposed to light up ? Has a wire goin to it but not sure if its for a bulb also isnt my part time \ full time lights on the dash supposed to be on when engaged in 4x4 ?

 

You should have a light that lights up, yes. Check on the top of the transfer case to make sure the connector is actually plugged in. You have 2 connections, one is your speed sensor near the rear output, the other is on the front part of the case.

 

The bezel around the shifter should light up, theres a bulb under it.
The light is supposed to come on for 4wd. Alot of them dont work, and I just dont worry about it, I dont need a little light to tell me im in 4wd.
The switch is easy to test and change though.

 

Where is the switch could it just be a loose connection behind the dash ?

 

Did you check the transfer case?

 

I saw wires but dont know which one it is

 

First step in all things electrical is to check if its plugged in. As I said in my first response you have two electrical connections on your transfer case. One on the back half of the case, and one on the front. The one on the front is your 4wd selection switch, check to make sure its plugged in. Mine was just hanging there, plugged it in and all was well. It will require you laying on the ground and actually reaching up on top of the transfercase. There isn't really anything to come lose on the back of your gauge cluster, once you pull it you'll see the entire thing is just a printed circuit board, only thing that can come lose is the bulb, there isn't even a single wire on the thing.