Did a quick search on the internet and came up with this as a hit.
http://en.allexperts.com/q/4-Wheel-Drive-2700/94-Jeep-Loud-Whining-1.htm
One Gentlemen had a transfer case full of metal.
I figured you had bearing issue before I did the search. Which leads to the next question in my mind what kind of oil are you using and have you ever checked or changed it. My resources show the transfer case takes ATF.
Once you have it repaired I would suggest looking into a better ATF then you can purchase at Wal-Mart or Kragen Auto parts.
get the seals checked out around the transfer case and tranny
Try changing you oil and if that does not help you will need to rebuild the tranny or replace it.
Yes, that can happen. When it does, the transfer case will need replaced. Causes include mileage wear and running with low fluid.
that would probably be the transmission. It may not qite be working right.
P1698 no bus message from tcm. The engine computer is unable to "talk" to the transmission computer. You need to check the wires between the two.
i would not do that, because it causes uncirculated heat in your transfer case and tranny, so its best to have all wheel off the ground
Part time is only for use on slippery road surfaces. It causes binding in the axles and transfer case if used on dry pavement.Part time is only for use on slippery road surfaces. It causes binding in the axles and transfer case if used on dry pavement.
fire=hot
Entropy
The act or process of conveying or transmitting., A process of transfer or transmission, as of heat or electricity, by means of currents in liquids or gases, resulting from changes of temperature and other causes.
transmission cooler
Faulty transmission Pan gasket