grinding noise in transfer case

I have a 96 silverado 1500 with auto transmission. On acceleration at around 15-20 mph it starts to grind and then pops.Its fine at higher speeds.It only happens when I reduce speed again or a stop and then go.It is also fine when I switch to 4wd. Any help would be appreciated.

check the clip on the rear output shaft of the transfercase. you will have to take the tail housing off first. the clip will break and cause the shaft to slide in to the T-case and grind on chain.

If my clip was broken would it make a grinding noise whenever my truck is cold and I roll about 15 feet? And not nessesarily cold just sits for a little while. It will not do the grinding noise agian till I stop and let the truck sit for a while. And to make things stranger, the headlights usually dim????? And I swear something is rattling down there and I cant tell if it is the cv shafts or something else.

I know I am jumping in but does anyone have any advice?

http://www.drivetrain.com/gillies/Tcasesaver.html

I found this link. What are some of the warning signs that the snap ring may be broken?
The reason I am asking is I bought my truck used and it has a brand new driveshaft and a rebuilt rear end. It makes me really wonder what went wrong… I can’t help but think that something may be wrong with my transfer case.
Has anyone put one of these in or replaced the snap ring? I would appreciate your input and what your truck was doing prior to the repair.

Thanks Richard

Yeah I have replaced the clip with the same type as I could not find that Tcase saver you posted the link to on short notice.

What mine would do is most of the time when you would be slowing down to the point of where the engine is slowing the truck more than the brakes, ie coasting it would grind. and then when the you stepped on the gas, even if just slightly it would POP real loud.

Riche, check the clip, it only takes a few minutes, pull the rear drive shaft, and then 4 bolts to pull the tail housing off. then grab the shaft and push in and out. it will be very obvious if its broke..

Anyone have an idea if this type of transfer case saver kit is something that your average joe can do by themselves? I think I have a similar problem, but I'm not much of a mechanic. The biggest project I've ever fixed on my Tahoe is replacing the tensioner belt. Any help would be much appreciated.