I have a 1997 XLT Explorer with a 4.0 SOHC motor and a 5 speed auto and ,I believe, auto track. The 4 wheel drive is not working correctly and some times when not under power, the transfer case make a loud grinding sound. I have changed the Hal sensors, the shift motor, the gem mod., the plastic fingers in the T case, the "hat" gear in the T case and tested all the pulses, and 4x4 relays.
I am lost. Could it be the electro magnet in the T case?
Thanks
Ken

 

Either a bearing, slack chain or trouble with the clutch pack.

Was it grinding before you got into it?