Alright so i am half way through rebuilding my transfer case and i wanted to put some more knowledge into this great forum.
So i guess first i will describe the symptoms-
1) In only forth gear, the drivetrain would make a real bad humming/grinding noise.
2) T case popping out of 2HI and 4HI into neutral at speeds over 30 mph.
3) Noise sounding like a monkey throwing tiny wrenches into the gears in 4HI and 4LO.
4) Worse that it got, would not go over 50 mph in 5th, felt like something was holding it back.
Causes of the problems-
1) Destroyed input bearing, outer race was in three pieces, the holding cage was non-existent, and the balls were very off round.
2) Due to bad input bearing, the teeth on the range and the back inside of the input shaft were worn at an angle causing it to slide out of HI range.
3) Someone did not put the syncro snap ring in holding the syncro studs in place. Found the ring at the back of the case. A stud fell out and got smushed in the chain, ruining the teeth causing the clicking noise.
4) Never found an actual cause, just assuming it was a combination of everything!!
Rebuild Time
Tear Down-
I took the case out for the ease of rebuilding it in my dorm room and not in the cold VT weather. So to do this, remove driveshafts and shift linkage and vacuum plug, get it all out of the way. Next use a 3/8 allen wrench to drain the fluid, look for metal pieces. Next take the six nuts off the six studs holding the t case to the trans. If your not on a serious incline dont worry about the t case falling off after you take the last nut off. Pull the case off and take inside. You should have this

Take off the rear tail shaft housing.

Remove snap ring, in my case i bought the t case saver.

anways it should look like this

remove the 9 bolts and two nuts holding the two cases together, there is no need to remove the oil pump housing, leaving it on makes things easier later. After the bolts are out pull the back half off.

Oil filter, tube, and pump stay in place

remove spring and cap, set aside

take snap ring off front drive gear

everything slides out now, just pull back, this is fun to do haha

i think it goes without saying but just be gentle with the parts and stay organized.
If you need to change the syncro ring or studs on the main shaft, take the snap ring off and everything slides off.
anyways the range slider and fork are left in the planitarry

they just come out with a wiggle

planitarry gear


next flip it over to take the input shaft and bearing and planitarry out. Remove the four bolts any pry the cover off.

remove the snap ring

gently hit/push down on the input and it falls right out

remove the snap ring holding the input shaft in and pull it out. There are two plastic thrust washers and one metal one in here.

after that you are pretty much done taking it apart, make sure you inspect all the parts super carefully now. First time i did it i missed the range slider and had to take it apart again. Ill take more pics of the rebuild but everything is just opposite.