If nothing is wrong with your trasfer case they you might have done something wrong putting in the joint.

If the trie spins fine with the front axle off the ground and the Transfer case in "N" it might not be the Trasfer case.

If the Joint has a problem then the Transfer case just might be doing it's job by sending power to the front axle, senseing slip or drag.

when the VC in the Transfer case go's bad it's still able to drive on pavement but just has problems when turning. Like the above post check the trasfer case and see if the fluid is ok, if you have never changed the fluid it may be time to, it's very easy with only a filler and drain plug on the back of the case.

It uses Trans fluid, so no big-e.