His first sentence says "'84 F250 4X4"
So it's pretty obvious the drive gear is in the transfer case, on the output shaft.
If the cable was out, in order to be spun by a drill, one would expect the driven gear got a look.
Maybe the TC has been apart and someone forgot to stick the locating ball in there with grease when replacing the drive gear?
There might be enough drag to turn the cable, but not enough to turn the speedo?
Jim,
Lil'Red is a '87 F250 HD, 4.10's, 1356 4x4, Zf-5, 3G, PMGR, Saginaw PS, desmogged with a Holley 80508 and Performer intake.
Too much other stuff to mention.