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What is your question?

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I believe you are describing the same issue I had approximately 2 years ago and yes, it is the transfer case. I still have the receipt from the repair and if I'm not mistaken is was almost 2k to repair. Of course, you have to consider that I took it to the dealership to get it repaired, so I'm certain I paid premium prices for labor. Sadly, I am starting to see the early stages of the same problem again. I LOVE this car, but is 10 years old this year and has over 160k miles on it. I'm having an issue with the air not blowing out of the front vents and the gas gauge still won't work after replacing the entire fuel pump. The repairman said the fuel pump is sending the message to the gauge now, but the gauge isn't reading it. I'm hoping to make it through this year before I have to break down and buy another car.