Quoting H05TYL:
Just pull the transfer case out and have a look at it. There's only 5 bolts holding it in (plus dropping the downpipe out of the way). Another 5 bolts will have the plate off the side and you can see if there are any teeth missing or not.
This is totally the place to start. If has to come out anyway if the trans has to come out. Also check the output shaft splines on the trans as those can strip out with repetitive abuse. Same applies to the inside of the t-case splines.
Just pull the transfer case out and have a look at it. There's only 5 bolts holding it in (plus dropping the downpipe out of the way). Another 5 bolts will have the plate off the side and you can see if there are any teeth missing or not.
This is totally the place to start. If has to come out anyway if the trans has to come out. Also check the output shaft splines on the trans as those can strip out with repetitive abuse. Same applies to the inside of the t-case splines.