Don't worry, I fixed it. Note to future readers, make sure the large round gears keyway is correctly engaged in the actuating arm. It makes the world of difference.
Also, don't look to the factory workshop manual for advice. All it'll tell you is that this item is unable to be disassembled. Of course we know better though
Mine worked after fixing it but after 20kms or so the 4x4 light flashed until i turned the car off and on again, then another 20 kms or so flashing again. In and out of 4wd no prob though. Moved the rack & pinion forward a bit and pulled the plastic cover off and found the actuating arm (not the large plastic gear but the bit that attaches to) was a tooth out. It should have even throw when you turn it left and right while rotating the black drive shaft into the diff back and forth with your hand. The give away was the tracks left in the grease from the electric contacts were not the same endpoint as the shiny marks underneath the grease from where they used to run from new. Just make sure it is in the disengaged position (Black drive shaft into the diff rotating freely) before refitting the black cover so you dont damage the micro switch.
Note: I know you dont have to remove the actuator arm for a water damage repair but my alloy body was bent and binding on the large internal sliding pin the selector fork attaches to from a front end collision (Repairable write off) so i had the hole unit out and stripped in the press with heat.
Hope this helps some one if they mistakenly take the actuator out and miss time it on re instillation.