My 2001 just started doing the same thing this winter. I knew it was in the transfer case. I just knew it. Thanks for confirming it guys. Now to start looking for a manual shifted case..

GB

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2001 Edge Regular cab, auto 4.0L 4x4 4.10LS 8.8

1987 standard cab w/92 5.0/T5Z 31 spline 8.8 w/Torsen

1989 Regular cab longbed, manual 2.9 4x4 - Parts BroncoII's x 3

I believe the problem is the plastic inserts they put on the shift forks and am looking into it more myself, this would allow the shift fork to become loose and not fully engage the 4x4 gear. I have looked through the factory manual and I think it may be the culprit. Typically if the chain is jumping the transfer box will not last very long. The feeling is very much a popping and a loss of 4x4. Did anybody on this thread get a result? I am looking for information that may help me also. I have a 2008 FX4 Ranger. The rest of the drive line is in mint condition.