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I posted a week or so ago about a tranfer case, now I dont' know what it is.
Everytime you let off the gas going down the road what sounds like a gear starts grinding LOUD. As soon as you get back on the throttle it goes away. If you push in on the clutch while this is going on you can hardly get it back in gear until you come to a stop.
Does it in every gear including reverse. Whether in 2WD or 4WD
That sounds like an issue with the rear end to me. Check to make sure it is full of gear oil. It should be 80w90. You may want to take the cover off and drain out the old gear lube and then refill with new. If its an LS diff, don't forget the friction modifier.
Well, it was the transfer case. So, I went to the junk yard and got one that had been driven by a little old lady. Had my neighbor with a lift put it in and low range is out. Junk yard will give me my money back, but it's still a hassle. So, I just decided to buy a rebuilt one for $595. The man at the yard said he would have me another one by tomorrow, but you are still loooking at something with who knows how many miles on it. I think I would rather just be done with it.