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Is the front drive shaft supposed to turn while in two wheel on a 2002 S10 Blazer?

No, the front driveshaft on a 2002 S10 Blazer should not turn when in 2WD. The transfer case should disengage the front driveshaft, preventing it from spinning. If it's turning, there's a problem with either the transfer case, the front axle disconnect (if equipped), or a linkage issue preventing proper disengagement.