All H3s are full-time 4wd and have three modes:
4HI-street (varies the torque output between front and rear)
4HI-lock (locks the output to 50/50 split in high range)
4LO-lock (locks the output to 50/50 split in low range)
Changing modes works best with the trans in neutral and the vehicle stopped. The blinking light indicates that the t-case is in between modes, and it should go solid once you are fully engaged.
The H3X is nothing more than an appearance package...basically a "pimped-out" H3. They come from the factory with 17" chrome wheels, square-tube faux brushguard, rigid spare tire cover, and they almost always have chrome door handles, leather, navigation, sunroof, etc. Most H3X's arenot equipped with the Adventure Package but, if you have an additional button on the cluster for a rear locker, then you also have the Adv. Pak. In addition to the rear locker, the Adv. Pak option also gives you a lower (4:1) low-range for off-road crawling and specially-valved shocks.