Hey Scott,
Even though you do not have flakes is still could be transfer case. If the truck will still move forward try the four wheel drive option high and low to see if they work, if so the problem could be in the transmission itself. Carefully get under the truck and see if you can tell where the noise is coming from, you may need a helper you can trust to stay on the brakes for this, do not let the truck roll. Please let me know what you find.
Best, Ken
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Friday, June 24th, 2016 AT 4:56 PM