I have 07 ford ranger sport 2x4.  I was wondering how hard would it be to make it into a 4x4.   I was wanting a dana axle in front.  Please tell me, i dont even know where to start  

Why? Why cut up a 2007? I would keep that as a Daily Driver and pick up an older Ranger to beat on. (I have built my DD Ranger into an off-road truck... and now I'm looking for another DD, so I have experience here)

If you did it though, basically you would need a 4x4 transmission, manual transfercase out of a 2002-3 or 93-97 (BW 1354M) (manual because you don't have any of the electronics for the electric shift), driveshafts (front and rear), you would need to cut out the stock front suspension bracketry, install a yota steering box, build some sort of shock hoops/coil buckets or coilover mounts, build or buy a set of radius arms, then install it all. Also you are going to lose your ABS completely since the sensors in the spindles.

If you feel like buying an older Ranger to make into a trail rig stay tuned to 4WOR Magazine for the upcoming Ranger Project... it should cover alot of what you want to do, just not on such a new truck.

Whatever you do be sure and keep us posted!  

What kind of transfer case would fit up to my manual transmission. Or a adapter kit to make a np transfer case fit.  I was going to put a dana 35 or a 44 with a leaf spring set up.   why do i have to get a new steering box.   I'm new at building 4x4s so all the help i can get will be useful.  

This is not the answer you want but if you really want a 4x4, either buy a old used one (which would cost less than conversion) or trade truck for one with 4x4 drive with a full warranty on drive system and a questionable warranty on the chop job conversion. I would not encourage anyone to void their new car warranty.