Does anyone besides me have a 2500 with the autotrac transfer case?
I just purchased a 2000 and I love it but the autotrac seems to be much rougher and noisier than the 1500's that I've driven. I figure some of this is normal but it also seems like something isn't right. It tends to bind in tight turns especially in reverse. I've read the posts about the chain noise and that may be the problem but I don't know if that would cause all of my issues.

It almost sounds like it is stuck in 4 wheel drive. It should not bind up like you describe unless it is in 4 wheel drive, and that should not be the case on dry pavement. I would maybe have it looked at , it almost sounds like there is an issue with the system cause mine only makes noise if it is in 4x4 and turning on dry pavement. Oh and i have the push button selector, not the autotrac, but either way , 4x4 is 4x4.

I should have specified that it was in 4wd auto.
With the autotrac this shouldn't matter. My stepmother has a 2001 Sierra 1500 with 75k miles that's been left in 4wd auto since it was new without a problem.
It doesnt' really seem to bind unless you cut the wheel all the way to the lock and then only slightly.