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I think it is my transfer case but how bad is it. When I engage it it sounds like it engages and then it pops out and starts grinding. Its weird because it seems to do it more when the load is heavier. sometimes it works sometimes it dont. Any ideas? or do I need to start looking for a NP205:banghead
 

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Or the detents are worn in the case or the shift rods, Either will let it jump out under a substancial load
 

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Since rebuilding it costs about $200 + time spent, and takes basically hand tools to do, yank it and tear it down. It might be something as simple as worn shift rails, but you'll be ready for another 30 years' service after you rebuild it.

If the shift rails are worn, you could replace them with some modified rails from JKW or ORD and make a twin stick.
 
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