I replaced it because as I was going down the road I heard a horrible grinding noise and the manual shifter for the transfer case was moving and shaking freely. Very rapidly as well. I opened the port on the back of the tc (the one to add fluid to if you need to since I figured that was the issue) and noticed the gear that’s visible was all chewed up from the grinding.

 

So it drove fine, aside from being noisy..... before you swapped it? Where did you get the replacement from?

 

It didn’t drive fine it kept switching in and out of four wheel drive and then the shifter went crazy. I got the new transfer case from a relative. Same gear ratio, NP241 DLD. The only difference with the newer one is off of a 3rd gen and I have a 2nd gen

 

Wonder if the spline count on the input hub on the t-case is different on third gens......