2000 4Runner Sport - Transfer Case Issue? Wants to jump out of 2HI and GRIND/BANG BAD
 

Recently purchased a 2000 4Runner Sport with just over 200k. Doesn't have the E-Lockers, regular J-Style/Manual Transfer Case. Was running just regular driving down the road in 2HI and out of nowhere it felt like I hit something, something METAL and BIG. Stopped and looked everywhere, nothing, drove it again slow and just started banging again super hard. Fiddled with it and figured it was in the transfer case. I can leave it in 4HI and it will drive just fine (Relatively speaking), but if I leave it in 2HI it will slip out of "Gear" "Towards 4HI" and just start banging. Its still in 2HI but trying to shift on its own. SUPER WEIRD. Wondering if anyone has had this issue and where I should start on troubleshooting/repairs. Dug around this/other forums and haven't seen anything quite like this, REALLY REALLY hoping for some direction. Thanks in advance.

…. Anybody? :)

Sounds like a bearing is toast, when the shaft moves due to play in bearings there is enough play to pull the synchro out of gear. Or the linkage is bent putting pressure on the shifter, or body is shifted putting pressure on shift rod,. On a manual transmission it is almost always a bearing that is toast causing the shifter to pop out of gear. Have you checked the 1L of fluid in the t-case yet to see its condition.

There is little 'troubleshooting to be done on manual transfer cases, other than to remove and disassemble them.

Yours is telling you that it is seriously broken.