That's correct. I went through the exercise last time my transfer case gave up.
I'm just speculating but i'm pretty sure my driveshaft is stuffed, the clutch has dropped to the floor so something to with that is stuffed, there's a whole lot of gearbox oil on the ground (and the back of the tilt tray) so there's a hole in the transfer case or gearbox somewhere, i'm pobably up for about $2k worth of repairs here. i'll see how much i can do myself, but i don't like the chances of it.
Thanks Nick, I was thinking you lived nearby, but i left your number in my other phone, i only had my work phone on me.