Transmission in neutral and rolling VERY slowly should be all it needs to shift into 4 lo. Its never a smooth shift but grinding is not right...
The only reason I can think of is, because you have a CAD front axle, the transfer case has a syncro ring to allow "shift on the fly" which simply means that ring engages like the syncro in a transmission whereby the front driveshaft must spool up to reach the road speed of the rear driveshaft in order to engage 4wd. With this type of transfer case, if you shift into 4wd at speeds above 10 mph as normal driving characteristics then you'll wear out that syncro ring and cause the transfer case to grind when switching ranges.
Shifting into 4wd should always be done at slow speeds unless you have a full time non-CAD 4wd system.