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i have a 1996 Eb 351 e4od Borg Warner and when it is in 4wd hi it is very noisy like it is in 4 low. If you crawl under the truck and spin the front drive shaft you can hear the noise and it comes from the t-case. Could Bad fluid do this? Could i need a new chain due to stretching? The t-case still works fine its just noisy as hell. The other thing if forgot to tell is its a push button 4wd.
 

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Sounds like bearing noise to me. I would think a stretched chain would make a different kind of noise. Is your fluid full?
 

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Couldn't hurt to drain and refill fluid if you dont know when it was done last. I did mine a few months ago with Valvoline Max Life Dex/Merc. I didnt have a loud noise maybe a slight growl. But I did notice that it went away after I changed the fluid. Just under 2qrts if I remember right.
 
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