well i was driving the jeep home the other day and it started making a clunking noise every couple of mintutes. i got it home and checked the level and it was about 1qt low so i added and drove it. it wont do it at take off but once it goes into overdrive it it makes the noise. and now its doing it every couple of seconds. the trans guy at work (ford dealership) says it may be a seal and to add some lucas to the trans. (havnt gotten the lucas) but i went to drive it today to take the trash down and every time i let off the gas it sounds like my trans is about to explode. and now i have no reverse and when i try to put it in reverse it sounds like im grinding gears. and the clunk noise is still there in drive.
2000 xj w/ aw4.

hoping there is a solution to the problem w/o pulling the transfer/trans.
just replaced fluid in the rear diff too.
thanks in advance for any help

 

I'd check the linkage to make sure it's shifting into reverse properly, but honestly the symptoms don't sound like an external fix. Good news is these transmissions are relatively cheap used, and not that difficult to swap.
Don't bother with the Lucas. If it does work it's only temporary, the increased line pressure will eventually blow the seal it's patched up completely out.

 

Yea that's why I hadn't gotten the Lucas yet. I figured I'll try to find one with low miles from the junkyards here and flush my transfer case. And while I'm there I'll to a tc drop. Gonna drop the trans pan today after work and see how grey my fluid is.