Well,
after a bit more investigating before destroying::))) - I decide to call a few shops to see who knew what was going on and at what cost for the repair.

Most of the shops I called did not want to bother giving any info and said bogus stuff (guys, this is why I HATE calling shops!!!!- they guess, and hope that someone says- yeah, its time for a new transmission)

However, one VERY helpful shop made me feel relaxed, and they may ultimately win my business. The only problem, I do not know If I can wait for them to fit me in.

What they said was that he was VERY sure that it was in the transfer case, a very common issue that requires a snap ring replacement, re-sealing the case, and reloading with fluid.

HMM.. can't find any reference online to this issue being relative to noise etc... but it makes sense. If it is simple, I would like to attempt myself. I have the ATF and tools standing by.

Any help as to what he may be referring to?

 

I should have stated as well that the repair estimate that he quoted was $95 if it is this issue...

I will begin documenting some other resources that could support/lead to this diagnosis:
http://www.ford-trucks.com/tsb/fullt...p?tsb=97-13-21

 

Ok, as the title infers..I am still having trouble and it appears now that it is the rear-end. I have taken it to a transmission shop and they put a sound monitor to it and found that the noise is coming from the rear end. they said while testing that the rear diff was smoking. They do not repair or rebuild rear-ends.

Therefore, I have brought the truck home, took the cover off the diff...and see nothing out of place! However, less than a CUP! of fluid there... Fluid is pure black and very thin. There is NO metal shavings in the pan. The gears look ok. The lube has a VERY STRONG Foul odor.

There is light staining at the bottom of the gasket showing indication that it may have previously leaked out.

Could this simply be a case of lack of fluid?= the lack of fluid caused the diff to overheat, and burn the remaining fluid.

thanks!

 

There should be at least 2 quarts of oil in your diff. Sounds like you burnt up the clutch's. Bummer! At the very least I would refill with fluid. Fill it to a 1/2 inch below the fill hole. Maybe it will be okay.