So bmoril-if you're willing to continue the conversation?

Some transfer case tests have ensued: All done with front wheels chocked and rears off the ground one inch with 2 jack-stands and a hydraulic jack for good luck under the differential. I'll try to be clear.

#1 With everything in neutral, transmission & TC, I can roll the shaft manually and turn the passenger side rear tire.

#2 With the transfer case in neutral, and the tranny in 1st, 2nd or 3rd, I can start the engine,drop the clutch and the shaft does not move.

#3 Then I ran out of gas in my own driveway and will need to try again tomorrow!!

Stay Healthy!!