My transfer case is clicking in both 2wd and 4wd. Any thoughts on what could be the problem? I'm trying to decide on rebuilding it or throwing in a junk yard replacement.

 

Can you give some more info? Does the clicking increasing with speed? Does it click in forward and reverse? Have you checked the fluid? Have you greased your u-joints, slip joints, and double cardon? When did you notice the sound? Has it gotten louder? Has any recent service been performed? Gone off-roading? Run anything over?

Also how many miles? What year? Auto or manual? Do you have the actuated Multi-Mode transfer case?