Rearend problem & Transfer case Problem

Done the search, can't find anything on my situation. I have a 1998 4X4 with 173,000 miles. Motor uses no oil, and is very sound. My problem is my drivetrain. It has been clanking, clicking, and all other noises coming from drivetrain. I took it to the local mech. he stated the rearend is about to go, and I had slack in the transfer case. he stated $1,000 bucks to fix. It's only worth about $2000 trade in. I think I want to fix it due to the motor being in great shape. But the question is WHERE DO I START------- FRONT OR BACK? Or do I shead a TEAR and let her go. Or even drive till it breaks?

Sounds like your mechanic is taking you for a ride.

With no real culprit and the high pricetag, the guy is taking you for your money.

Go to another mechanic.

I have taken to 2 other mechanics, all said the same thing. Something to do with my limited slip. The problem is I am in a small area there no GOOD mech. to fix. they all tell me I have to swap out.