I have a 2002 F250 7.3L with a noisey transfer case, it is almost like it is grabbing when in 4WD.
How much should it cost to rebuild & who do you recomend to get parts from? Rock Auto only lists input & output shaft bearings, and a 'transfer case motor', is this the part with the gears inside, or what else is in there.
Thanks
Pete

 

when you say it is "grabbing" in 4wd. Are you running it in 4wd low on the street?
4low is going to have some whine associated with it, and if you run the truck in 4low on dry ground it is going to hop around when you turn slightly, and get worse when you turn more. This is because the front and rear tires are trying to turn at different rates, and the t-case is not permitting it. How long have you noticed the difference? I am assuming that this truck was not like this before?
It is possible that the chain is bad, but these take a pretty good beating.

 

It is making noise in 4WD high.

 

Under what conditions are you engaging 4wd? It will be a bit noisy on dry ground. It will even drive terrible if all wheels are getting traction.
If it just the chain, and everything else is alright, (you won't know till you open it up) you should purchase the chain at the dealership. I have installed chains from aftermarket manufacturers only to be disappointed by them. Not very good quality. A factory replacement is the best.