alright i need some help finding out whats wrong with my transfer case. its the np 241 hd on a 96 dodge ram 2500 12v 5 speed.

transfer case is grinding like its stuck between 2hi and 4 hi. the manual 4x4 lever is adjusted right becuase the transfer case will go into neutral and 4 low but the front tires will not turn and neither will the front drive shaft. the grinding is coming from either inside the tcase where the selector rod attaches or the lobe that the front drive shaft attaches to.

sometimes if i mess around with the 4x4 lever i can get it to go into 2hi but will pop out and grind after a load is put on it for an amount of time, also the 4x4 light will not come on.

additionally the truck wants to begin to creep forward in 2hi or 4 hi but when the clutch is let out the entire way it grinds. neutral and 4lo works but the front tires do not engage.

could a split ring have fallen off or the chain popped off and a gear isnt staying meshed?

any input is greatly appreciated!!