Transmission Wont Engage! Move at all
You *can*.... but, it will be extremely messy, right quick. LOTS of fluid will come out if you run it without the t-case. I would suggest two people for that, one to sit in the truck, and one to watch, so, if the guy on the ground starts screaming SHUT IT OFF! SHUT IT OFF! There will be someone right there to do so. 
With the truck in park, and t-case in some drive gear, will the truck move if you push it?

With the truck in park, and t-case in some drive gear, will the truck move if you push it?
If the transfer case were stuck in neutral, the transmission would still be outputting, correct? Is it possible to drop the transfer case and observe for transmission output? I haven't played w/ transfer case/transmission before, so I don't actually know this. I'm just wondering if that's something OP could do to test for t-case/trans issue. Is there an easier way?
NO DRIVE OR REVERSE
(VEHICLE WILL NOT
MOVE)
1. Fluid Level Low. 1. Add fluid and check for leaks if drive is
restored.
2. Gearshift Linkage/Cable
Loose/Misadjusted.
2. Inspect, adjust and reassemble linkage
as needed. Replace worn/damaged parts.
3. U-Joint/Axle/Transfer Case
Broken.
3. Perform preliminary inspection procedure
for vehicle that will not move. Refer to
procedure in diagnosis section.
4. Filter Plugged. 4. Remove and disassemble transmission.
Repair or replace failed components as
needed. Replace filter. If filter and fluid
contained clutch material or metal particles,
an overhaul may be necessary. Perform
lube flow test. Flush oil. Replace cooler as
necessary.
5. Oil Pump Damaged. 5. Perform pressure test to confirm low
pressure. Replace pump body assembly if
necessary.
--------------------------------------------
BR/BE AUTOMATIC TRANSMISSION - 46RE 21 - 493
AUTOMATIC TRANSMISSION - 46RE (Continued)
CONDITION POSSIBLE CAUSES CORRECTION
6. Valve Body Malfunctioned. 6. Check and inspect valve body. Replace
valve body (as assembly) if any valve or
bore is damaged. Clean and reassemble
correctly if all parts are in good condition.
7. Transmission Internal Component
Damaged.
7. Remove and disassemble transmission.
Repair or replace failed components as
needed.
8. Park Sprag not Releasing - Check
Stall Speed, Worn/Damaged/Stuck.
8. Remove, disassemble, repair.
9. Torque Converter Damage. 9. Inspect and replace as required.
(VEHICLE WILL NOT
MOVE)
1. Fluid Level Low. 1. Add fluid and check for leaks if drive is
restored.
2. Gearshift Linkage/Cable
Loose/Misadjusted.
2. Inspect, adjust and reassemble linkage
as needed. Replace worn/damaged parts.
3. U-Joint/Axle/Transfer Case
Broken.
3. Perform preliminary inspection procedure
for vehicle that will not move. Refer to
procedure in diagnosis section.
4. Filter Plugged. 4. Remove and disassemble transmission.
Repair or replace failed components as
needed. Replace filter. If filter and fluid
contained clutch material or metal particles,
an overhaul may be necessary. Perform
lube flow test. Flush oil. Replace cooler as
necessary.
5. Oil Pump Damaged. 5. Perform pressure test to confirm low
pressure. Replace pump body assembly if
necessary.
--------------------------------------------
BR/BE AUTOMATIC TRANSMISSION - 46RE 21 - 493
AUTOMATIC TRANSMISSION - 46RE (Continued)
CONDITION POSSIBLE CAUSES CORRECTION
6. Valve Body Malfunctioned. 6. Check and inspect valve body. Replace
valve body (as assembly) if any valve or
bore is damaged. Clean and reassemble
correctly if all parts are in good condition.
7. Transmission Internal Component
Damaged.
7. Remove and disassemble transmission.
Repair or replace failed components as
needed.
8. Park Sprag not Releasing - Check
Stall Speed, Worn/Damaged/Stuck.
8. Remove, disassemble, repair.
9. Torque Converter Damage. 9. Inspect and replace as required.
1) Was it checked properly ? Full operating temp , trans in neutral . If you check it in park , the pump isn't circulating and will read over full . Gotta ask , seen it many times before .
2) Describe the oil you took out . Clean and clear red , or pinkish ? Anything pinkish would mean water . PO took it mudding , that may have included a swim too . I bought a flood victim before . Trans didn't last (46RE) . Much the same as you described , dropped maybe 50 RPM's but no movement . Could be time to drop the pan for a look see . My guess is the clutches are washed but you may not see too much dirt/grit if the PO changed out the oil before selling . However , still should be plenty dirty .







