trans or transfer ?

i just bought a 1988 wrangler there was a noise when in first gear . today when shifting from 1st to 2nd there was a thud and jeep quit pulling i put transfer in 4x4 still will not move but it feels like it tries to catch just a little the noise is there even out of gear when engine is cranked .. please help

hehe well if its your transfer case then you should have no gears.... 1,2,3,4,5,R ya know... does it work in 3rd or fourth? most likely the transmissions internal is shot, sickshift im guesing? i got a 1990 one that i just rebuilt myself recently, 4speed or 5? if its a 5 speed then thats an Aisin AX-5 tranny which is actually a toyota, its nota abd tranny and i dont get many of them, mine had a considerable amount of miles so that was my reason of breakage lol. but get back to me with your problem, my father owns a transmission business and he can be of even further help