Chevrolet 2007 Colorado Owner's Manual page 132

Press and release the Four-Wheel High or
Two-Wheel High button. You must wait for the
Four-Wheel High or Two-Wheel High indicator light
to stop flashing and stay on before shifting the
transmission into gear or releasing the clutch pedal.
If the Four-Wheel High or Two-Wheel High button
is pressed when your vehicle is in gear and/or
moving faster than 3 mph (5km/h), the Four-Wheel
High or Two Wheel High indicator light will flash
for 30 seconds but not complete the shift.
Shifting to NEUTRAL
Use NEUTRAL when you plan to tow your vehicle.
See Recreational Vehicle Towing on page 300
for towing instructions. To shift the transfer case
into NEUTRAL do the following:
1. Set the parking brake.
2. Start the vehicle.
3. Press the regular brake pedal and shift
the transmission in NEUTRAL (N), or
press in the clutch for vehicles with a
manual transmission.
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4. Shift the transfer case to Two-Wheel High.
5. Press and hold the Two-Wheel High and
Four-Wheel Low buttons at the same time
for 10 seconds. The NEUTRAL (N) light
will come on when the transfer case shift to
NEUTRAL (N) is complete.
6. Press and hold the regular brake pedal and
shift the transmission to REVERSE (R) for
one second, then shift the transmission
to DRIVE (D) for one second, or FIRST (1) for
vehicles with manual transmissions, and let
out the clutch to insure the transfer case is in
NEUTRAL. If the vehicle is not in NEUTRAL,
repeat this procedure starting at Step 3.
7. Turn the engine off by turning the key to ACC.
8. Place the transmission shift lever in PARK (P),
or FIRST (1) for vehicles that have a manual
transmission.
9. Turn the ignition to LOCK.