Replaced the transmission and now I'm having transfer case problems

[slick3d]

I'm lost with this one and need help. it's a 1998 Explorer 4.0 SOHC XLT 170K miles. Transmission died on the highway, lost drive, reverse and Park, replaced it with a Jasper rebuild transmission. About 100 miles later my transfer case started with a winding, grinding noise every time I would back off the gas and when I got it back to the shop it would not hold park or go into reverse but a loud grinding noise when trying to go into reverse, I was told the noise was coming from the transfer case. Replaced the transfer case with a rebuild. All was good for about another 100 miles or so and the same thing happened with the new rebuilt transfer case, winding grinding noise when backing off the gas at anything over 25 miles, no reverse just a loud grinding noise. The second time this happened I pulled over and checked transmission fluid with the engine running and transmission fluid was not visible on the dipstick, I let it sit for a while , rechecked and it started to register fluid, no burning smell, fluid is clean. Shop tells me they ran it for a while and fluid is correct and no leaks anywhere. Front drive shaft was replaced and both front spindles. I don't know what to do at this point, any suggestions would be appreciated
Thank you,
Dennis

 

[410Fortune]

At temp in park on level ground is how you check trans fluid
It should be registering on the stick

When shut off the stick will read way over level

Sounds like you maybe low on fluid

Do your 4wd lights flash? Usually when the control trac transfer case starts having issues you will get flashing 4wd lights

Is the check engine light on?

Who installed the good used transfer case?

 

[slick3d]

At temp in park on level ground is how you check trans fluid
It should be registering on the stick

When shut off the stick will read way over level

Sounds like you maybe low on fluid

Do your 4wd lights flash? Usually when the control trac transfer case starts having issues you will get flashing 4wd lights

Is the check engine light on?

Who installed the good used transfer case?

Thank you for the reply, checked transmission fluid at operating temperature in park right after getting off the drive from the main road, after the highway, didn't show any fluid on the dipstick only after letting it sit for a while then showed some fluid.
My 4wd lights never flashed, engine light is on because a Catalytic converter leak, bank one shows lean mixture but no other engine codes.
Both the transmission and the transfer case were installed by a reputable shop near me.
They can't figure it out and I don't want to just start replacing other components until this get figured out.
Is it possible that if there's a problem with the transmission it could damage the transfer case?

 

[410Fortune]

Right

So the fluid level is low
At no time in park with it at temp should the fluid be below the marks on the stick

The transfer case is completely independent of the trans
The old control trac t cases were problematic when they get some miles on them
Perhaps you were sold a bad one?

Check the codes
You need to fix that lean code it can cause some strange power issues

Did you get a good warranty with the new trans?

 

[slick3d]

Right

So the fluid level is low
At no time in park with it at temp should the fluid be below the marks on the stick

The transfer case is completely independent of the trans
The old control trac t cases were problematic when they get some miles on them
Perhaps you were sold a bad one?

Check the codes
You need to fix that lean code it can cause some strange power issues

Did you get a good warranty with the new trans?

Thank you for the fast reply, yes 5 yr. warranty on both transmission and transfer case.
Bad transfer case is possible, but I don't want to drop in another one without making sure that is the problem, the shop is told me that now it's not going into drive unless it's set to 4

 

[slick3d]

it's set to 4 high then it can go into drive. They are taking it for a highway test to check transmission fluid afterwards.
I'm just lost trying to figure it out.

 

[410Fortune]

Seems like a Bad t case
They should rebuild it

If you plan to keep this truck a while and you are crazy like the rest of us explorer nuts, I often do control trac deletes. This would be replacing your t case with a non control trac model or a manual shift
Borg Warner 1354 electric or manual shift are t cases that will bolt in place of your control trac unit.
Some wiring may or may not be required

 

[slick3d]

Unfortunately the C.A.R.B catalytic converters for my truck are around $2k, I just did the transmission and transfer case, the cats will have to wait a bit, lol

 

[slick3d]

Seems like a Bad t case
They should rebuild it

This is a rebuild t case, maybe it's bad like you said, waiting on some more test before getting another one.
Thank you for the response.

 

[410Fortune]

It could just be an adjustment at the t case shift motor

Let’s see what they come up with

What is your lean code? A lean code usually has nothing to do with converters
Now a catalyst efficiency code…
That is different

Lean code usually much much cheaper to fix especially on a 98 sohc

 

[slick3d]

It could just be an adjustment at the t case shift motor

Let’s see what they come up with

What is your lean code? A lean code usually has nothing to do with converters
Now a catalyst efficiency code…
That is different

Lean code usually much much cheaper to fix especially on a 98 sohc

I don't have the truck right now to read the exact bank 1 code, but I remember that it was a lean code, might have been PO171? I will check it once I get the truck back. Thank you for the info,

 

[slick3d]

Seems like a Bad t case
They should rebuild it

If you plan to keep this truck a while and you are crazy like the rest of us explorer nuts, I often do control trac deletes. This would be replacing your t case with a non control trac model or a manual shift
Borg Warner 1354 electric or manual shift are t cases that will bolt in place of your control trac unit.
Some wiring may or may not be required

I will have to look into this, how does it work? the non-control trac model?