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Transfer Case Shudder or Binding

WARNING: This page is about a different car, the 2002 GMC Yukon XL, 2002 GMC Yukon, 2002 Chevrolet Tahoe, 2002 Chevrolet Suburban, and 2002 Chevrolet Avalanche. However, it is still accessible from the selected car via links, so may be relevant.
Transfer Case Shudder or Binding

Cause Correction
DEFINITION: A shudder felt during acceleration, or a crop-hop while turning, when it is in the AWD mode.
Review the Symptoms - Transfer Case  and perform the necessary inspections.
Oil breakdown or contamination Flush the transfer case, and fill with the correct fluid. Refer to Transfer Case Fluid Replacement .
Incorrect transfer case fluid Flush the transfer case, and fill with the correct fluid. The active transfer case uses a blue fluid. Refer to Transfer Case Fluid Replacement .
Burrs on the clutch hub slots De-burr the hub slots. If the hub slots are excessively worn, replace the clutch hub. Refer to Transfer Case Disassemble and Transfer Case Assemble in Transmission, Transaxle Unit Repair Manual.
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