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Diagnosis And Testing - Transfer Case - NV242

WARNING: This page is about a different car, the 2005 Jeep Liberty. However, it is still accessible from the selected car via links, so may be relevant.
DIAGNOSIS CHART

CONDITION  POSSIBLE CAUSE  CORRECTION 
Transfer case difficult to shift or will not shift into desired range. 1) Transfer case shift cable binding. 1) Repair or replace cable as necessary.
2) Insufficient or incorrect lubricant. 2) Drain and refill transfer case with the correct type and quantity of lubricant.
3) Internal transfer case components binding, worn, or damaged. 3) Repair or replace components as necessary.
Transfer case noisy in all drive modes. 1) Insufficient or incorrect lubricant. 1) Drain and refill transfer case with the correct type and quantity of lubricant.
Lubricant leaking from transfer case seals or vent. 1) Transfer case overfilled. 1) Drain lubricant to the correct level.
2) Transfer case vent closed or restricted. 2) Clean or replace vent as necessary.
3) Transfer case seals damaged or installed incorrectly. 3) Replace suspect seal.
Transfer case will not shift through 4X4 part time range (light remains on) 1) Incomplete shift due to drivetrain torque load. 1) Momentarily release the accelerator pedal to complete the shift.
2) Incorrect tire pressure. 2) Correct tire pressure as necessary.
3) Excessive Tire wear. 3) Correct tire condition as necessary.
4) Excessive vehicle loading. 4) Correct as necessary.