Update...
I'm not sure on the "why not to run in 4 wheel drive with hub sin Free" I think I read that on the Sun visor describing 4 Wheel Drive operation. I would think it would be ok....I'm curious also...
Update. I ran out of time it's almost Midnight the way it is.... (boy I like those halogen worklights!)
I was getting ready to remove the front driveshaft when I noticed the right front tire wasn't locked....hmm. So that may be the root of my problem...not the transfer case.
I took it apart, cleaned the parts and put back together. Havn't road tested it yet. I didn't like the way the Axle didn't seem centered as it was sticking out of Locking mechanism...I may have a bigger front end problem.
And there was a snap ring, that didnt seem to fit anything... in the hub. LOL them mechanics!
Once I get some money I'm gonna have the front gone thru....by someone I trust.
I can road test tommorrow sometime.