I checked with a local transmission repair shop who susposedly deals with fords and I was told that some clunks are normal depending on the wear of the gears. The guy there told me to bring it by on monday and he would take a look. I still dont think there should be a clunk when the transfer case is out of a newer truk then mine unless the previous ownere beat the heack out the four wheel drive system but I dont think so the gears and parts inside didnt look worn. I will keep you guys posted and if I have to tear it apart I will take photos and post them. I woud have taken phots before but could not find the camer.