After 2 days of searching for some info on my NP241 transfer case, I am pleased to share with you what I have found. The factory service manual!
My transfer case has the dreaded chang, chang chang sound, skipping around jumping in and out of 4x4 and making terrible ganashing sounds. I spoke with a friend of mine who has been a mechanic for over 30 years and has worked on many t-cases (and who called this 241 a "cheese box"
he can't believe Dodge put this behind a Cummins) and he has seen this symptom plenty of times. 7 out of 10 times he says it's the nylon pads on the shift forks that are worn out, and not fully engaging the sprocket on the shaft. With fingers crossed, it hasn't worn into the gears or worn the shift fork and changing the pads should get me going again.
I'll let you know, but in the meantime...here is the service manual for you.
PS, well it seems I can't upload yet...I'll try another method for you
here ya go http://www3.telus.net/radioboy/trans...20overhaul.pdf