It's not throwing any codes, I have a matco proscanner doesn't seem to connect to the transfer case, grounded pin 13, didn't flash anything....
I have a feeling it was the front diff smoking, maybe through the vent on it running into the engin bay?? I didn't make it to work today due to the 18 inches of snow we got last night...lol, ugh...

I'll yank the plugs on the diffs and check fluid hopefully tomorrow, and guess I'll return the friction modifier...don't know what else I could use that on other than my tires right about now....
Thank you guys for the help, the G80 seems nice looking at the vids on youtube...wish it would work....