Posted a thread on this a few months back. I was have some grinding going on between N and 4L. However it was only occurring when shifting from 4L into N.

Someone had suggested I top off the t-case. Today I drained it and topped it off with new fluid. Dex/Merc III. I'm still having this grinding issue. Any thoughts?

 

Maybe the linkage needs to be adjusted or the plastic bushings holding it together need replaced.
Nice link on adjustment and options for replacement parts as well:
http://www.naxja.org/forum/showthread.php?t=976227

There is also a kit available somewhre for replacing all the bushings in the linkage for not much cash.

 

Are you coming to a complete stop and putting your trans in neutral when shifting N - 4L

 

Yes. I'll stop, throw it in neutral, shift the t-case from neutral into 4L, drive around a bit. When I stop and go back into neutral on the t-case, it grinds. Or pinches.

 

I think you have to put it in neutral shifting back out of 4L too. Sry if you are doing that.

It could be that the chain has gained some slack in it.

 

Thanks for the answers guys. Ill have to take a look at it when I have another day to spend on it. This weekend will be the manifold... Finally.