I got it all back together and the front diff seems to be okay so far. No leaks anywhere - knock on wood. I followed the procedure I found here on the transfer case - change the fluid (blue autotrack II) drive it a few miles then change the fluid again. It is now probably the best it has been since I have owned as far as binding when turning. However it is still doing it very slightly and we have probably driven it a couple of hundred miles since the fluid change too.
I think read on here that the binding could be caused by the encoder motor on the transfer case or the computer? Anyone?
Is there a fuse I could remove to disable the AWD?
Thanks,
Scott