From what i can see from your pic's, it look like the mounting/pivot point that attaches to the side of your transmission has wore out. It looks like the rubber bushing that holds the linkage into place has rotted out, or just plain broke. If it was me, i would just go to my local Jeep stealership, and pick up a new rubber bushing kit that holds all the 4 wheel drive linkage into place.
It sucks, but you can always climb under your Jeep and shift the T case into 4 wheel drive manually bye hand until you get the linkage bushings replaced.
It the lever on the T case is all the way out, or the lever pushed all the way forward towards you motor, that is 2 wheel drive, 1 click back towards the rear of your Jeep is 4WD Part time, 2 clicks back is 4WD Full Time, which is really the position you want your T case in for everyday driving in 4WD.