Ok so ill been dealing with this issue since I've owned my XJ, about two years. The snap ring on my rear output shaft will never stay in place. When the ring comes out of place it allows my rear output shaft to knock in and out about a 1/4 inch. But its just enough to have my gears in my transfer case grind when in 4wd and also always kinda be in 4wd.
I've replaced the snap ring a few times already and it never stays in places more than a day. The only thing I can come up with is, it looks like my slip yoke only has about 3/4 of a inch forward play till it bottoms out on the rear output of the transfer case. Seems like a good bump will knock the ring out of place. The back of my jeep does sag due to warn out leafs. Has anyone had this problem or know how much play my slip yoke should have before bottoming out? Seems like I need to lift it to actually pull the drive shaft back or get it shortened ...

 

did you replace them with new snap rings? what sye are you using. pics would help too.

 

Yeah I've used new snap rings. Ill try and take pics next time I fix it. But I kinda gave up on it now because it doesn't stay more then a day. Its a NP231 t case btw.

 

Also I don't have a SYE. Its just the stock drive shaft with a slip yoke.

 

autozonsell shackl;es in the towing section like 40 dollars shpould stop shaft from hitting clip...