Customer had a grinding noise when starting out forward in 2wd. Checked all fluids and transfer case fluid was black and full of metal. Found a bearing had failed – replaced with new one and all new seals.
Customer came in with no fluid in transfer case- These transfer cases (263, 263XHD, 246, 261)
Customer came in with no fluid in transfer case- These transfer cases (263, 263XHD, 246, 261) have a pump that moves back and forth and pokes a hole in the case half. Sometimes if the hole is small enough the case can be JB welded and a case safer (a part that sits between the case and the pump) can be installed to prevent further damage. This case was too badly damaged and the case half had to be replaced and a case saver installed into the new housing. Original case halves are magnesium and new case halves are aluminum- increasing the durability.