The circlip may just pop out of the groove, and be sitting on the land next to the groove, so take more than just a cursory look.

I had an intermittent whirring noise, not unlike a noisy ring & pinion... this would be when the shaft moved forward due to the circlip not being in the correct location, and causing the silent chain to run on the side of the sprocket, and be not so silent.
It's when the shaft moves enough for the chain to ride up onto the sprocket teeth that the fun starts... this is when you get a bang, and TC drops on the ground in pieces.

 

Hahah, Well I'm not going to pull it apart just to see what the inside of a Dodge Ram transfer case tail housing looks like. Thanks though, I'll make sure I am thorough

I am putting a new transmission in my truck tomorrow and since this has been pointed out as another flaw/weak point of these trucks I'll just inspect it while the transfer case is sitting on my tranny bench before it goes back in.

 

All you are removing is the tail shaft , what 4 bolts? It's easy for piece of mind. No grinding chains etc.. or broken TC.

 

Took a look today, mind is at peace.