Transfer Case Problems
 

The transfer case on my truck is the NP 241 DHD, and I had my 4X4 modified to an air lock system, not sure if that matters. I was pulling onto a hill from a stop in my neighborhood and it felt like the transfer case popped up and bashed into the floorboard, and it made a quiet metal on metal grinding sound. It also has a leak through one of the gaskets. these things are over a grand brand new so would it be worth it to rebuild it myself? or should I just order a new one?

You need to take it apart first and see what is damaged. They are fairly easy to rebuild but you need to price out the damaged parts to see if it is worth it.

I rebuilt my NP271 earlier this year. It was fairly simple to do. I got the parts from Midwest transmission center in Minnesota. Take it apart and see what happened.