241 DLD problem
 

I am having a problem with my transfer case, I pulled it out, tore it apart and nothing looked out of the ordinary , so I put it back in my truck and its still doing the same thing it was, it is actng like it is in neutral but it makes a loud grinding noise but only when the truck is in gear, just idling in neutral it doesnt make any noise at all , any ideas?

umm...are you sure its the t-case?

Im pretty sure, the transmission doesnt make that noise if i start my truck and shift it with the t case out

is it possible the 4wd actuator on the front axle is bad causing the splines to be partially engaged?

check your pinioun gear and bearings my 95 did same thing once when the bearing went out it chewed up my shim plate and pinoun gears to

i'm with blue thats what i was thinking also was the rearend

It does it with the driveline out , both front and back, it only makes the sound when the t case is in the truck, when i shift it without the t case in it shifts normal and no noise

When your rear drive line is out, check to see if the output shaft on the tcase has forward and backward movement. A common case with the 241 is there is a snap ring in the tail housing that keeps the shaft in place, sometime that snap ring will break causing the shaft to move back and forth. Thus moving all the gears attached to it, commonly moving the synchronizer gear sleeve on the 4wheel drive gear causing wear, so if that is the case, check to see how worn that sleeve is.

I pulled the tail housing off and there are 3 snap rings, one against the bearing in the tail housing, and 2 on the speedo gear, is there another one im not seeing?

Seems to be all there. The one against the bearing is what keeps the shaft in place, did you try moving the shaft to see if there is any play? If it is the tcase causing the noise, it might be something further inside, the tcase is pretty easy to take down and put back together if you wanted to try that.

Img