Transfer case clunk

Outside Saratoga. Far enough away from Albany that I don't have to smell it.
I was born in Saratoga Springs, spending the first ten years of my life there and Rock City Falls. Moved back in late '81, living in Greenfield Center and Schuylerville, and working in Ballston Spa. Left for good in December of '83. Still got a helluva lot of family in those parts. Man, I miss Saratoga Vichy Water and Oma's Pizza!
(Sorry for the derailment, but I couldn't help myself!)
 
When 4x4 is engaged there is an amount of play by design in the mode hub that creates a clunk. The 2 pieces that get meshed together by the mode sleeve do not have the same amount of teeth, one side has half as many teeth to make engagement easier. When the mode sleeve is engaged, the side with less teeth(which is attached to the chain) is able to move back and forth between the teeth in the mode sleeve).

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It is definitely not standard 4WD operation. I had this Jeep for three Colorado winters and only started hearing the noise the past year. I'll post a video up today or tomorrow of the noise while the vehicle is driving.
 
It is definitely not standard 4WD operation. I had this Jeep for three Colorado winters and only started hearing the noise the past year. I'll post a video up today or tomorrow of the noise while the vehicle is driving.
Have you opened the case and checked to see how much slack your chain has? I replaced mine and it tightened things up.
 
I haven't had a chance to do that. Rebuilding the driveshaft was all new territory for me, so I'm a little worried about touching the t-case but given my current budget, I don't have too much of a choice. This sounds like it could be the issue based on the symptoms I'm experiencing though, so this will definitely be my next course of action.
 
In the video it almost sounds like you can hear the chain. If you can hear the chain like that then it is toast in my opinion. Silly question but is there fluid in the case?
 
Silly answer, there was not, it was bone dry. Filled it with two quarts of ATF-4, and didn't see any leaks. Took it out, put it in 4WD. Still a clunk, but much quieter due to the fluid. Obviously the chain. Got it home and noticed it was bleeding ATF from the rear driveshaft. I'm assuming at some point, the chain became lose due to off-roading, which was the clunk I initially heard (and also heard today when it was full of fluid). At a later point, I'm assuming the added stress caused the rear output shaft seal to blow. Any thoughts?
 
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That’s pretty important information you left out untill now...
 
Any thoughts?
Pull it apart, needs work. Probably a new chain at a minimum but you might find some other burnt stuff like bearings. I have little to no experience with the guts of those things but I read they ain't too bad. Best of luck with it.

That’s pretty important information you left out untill now...
I don't think the OP really knew it was dry when the thread started.
 
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That’s pretty important information you left out untill now...
That's pretty important information that I posted as soon as I found out. If you read from the original post, everyone suggested u joints, so I followed that route. When someone suggested the t case, I looked there. If you're just here to criticize me, please go elsewhere.
 
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Pull it apart, needs work. Probably a new chain at a minimum but you might find some other burnt stuff like bearings. I have little to no experience with the guts of those things but I read they ain't too bad. Best of luck with it.

That's what it's looking like. It's going to add to down time, but I'm going to get if off and completely apart before I assess the damages. They have the full rebuild kits but they're pricy, and if I can get away with just the chain and one seal, my wallet will be happier.