So here is my dilemma. My truck is a 2002 1500 Quadcab with the short bed and the 4.7L and the manual transfer case, NOT push button

First snowfall of the year last night and I was cruising around town in the snow. Not always in 4wd but using it when I needed it. I came to a stop and tried making a left turn, started to slip, and then threw it in 4HI. It started to jerk a little bit almost like it was binding up like it would on a dry road. After I got going I took it out of 4wd and about 200-300 yards down the road a very awful sound started. It almost sounded a chunk of ice got stuck and was rubbing against something.

Anyways, I managed to limp it home and this is what i have determined today:

The grinding/rubbing noise will ONLY happen in 2wd, once 4HI is engaged it goes away. but once I go over about 7MPH the grinding starts in 2wd.

4wd still works perfectly, absolutely no issues with it.

While trying to push the transfer shifter into 4HI I can feel it vibrating at the same tempo/speed as the grinding noise and it goes away as soon as 4wd is engaged.

I know a decent amount about cars and i am not afraid to get my hands dirty but I know NOTHING about 4x4! It almost feels like 4wd isnt fully disengaging and gears somewhere are still rubbing/touching, because as soon as its put into 4wd, the noise stops.

Any help here guys would be VERY appreciated, im kinda stuck at this point so I would like to know a few things I can check and then eliminate first. Thanks!!!

 

Anyone?

Ive been doing some reading and Im suspecting that it may be the 4WD Actuator but Im not 100% positive and im unsure of where this is located.