I'm not disagreeing with Mike or Ben but just throwing this out there for reference and more for people interested in running a non-stock or divorced t-case:
If you use the trans output shaft for the speed sensor it will shift fine in 4-Low.
I realize that. But its just nice to have access to the different 4wd low shift points and converter lockup, etc...
Why is this such a big argument, there is no reason/advantage to run the output speed sensor this way (pre-transfercase, or some other botched setup). No matter what transfer case you are running, stock, NP205, BorgWarner, whatever.....mount the speed sensor in the stock fashion, and adjust the TCM tables accordingly. Win-win-win situation if you do it this way, everything works the way its supposed to, you get the 4wd low tables enabled, etc...
You guys are all making way more work for yourselves and way overthinking all of this, when the simple factory solution is already in place, and works perfectly fine (once you change the TCM tables in efilive). The original question was how to set it up in the easiest way and make it work seamlessly, just like the factory setup. I provided the answer, how to enable 4wd low on the TCM (ground pin 42) and now people are STILL discussing how to do it differently as if there is a better way to set it up than like GM did from the factory............
and as a bonus, the last of the NP205's (early 90's GM HD's) even had a factory VSS with the correct 40 tooth tone ring...so you literally have to do ZERO modifications. Completely plug and play.