Trans Case rattle?

[Mberry0614]

99 explorer EB - 4.0sohc, 4wd, 230xxx miles -
My explorer started making this real loud popping/knocking noise from underneath the vehicle. It was very aggressive. I thought it was the rear end. I pulled the front drive shaft out, the noise was still present. The only time the noise went away was when the vehicle was jacked up in the back and the rear wheels were off the ground.

Well eventually the pop noise turned into a grinding noise. Now, the vehicle will go through all the gears, but won't actually move, and there is a Rattle coming from the transfer case.

Did the chain pop off or did I break off the shaft inside the trans Case? Not really sure what happened but I'm assuming if trans Case is making noise that's where my problem is.
If I replace it with one from the salvage yard will that fix my problem? Do you think I messed up the trans in the process?

Thank you for all your input/advice. I'm open to any/all suggestions regarding trans case R&R

 

[nameskreen]

I had an AWD Limited Explorer that this happened to years ago. My wife pulled away from a red light, heard a bang, and the vehicle stopped. I was told by the shop that the chain inside broke. We put a used t case in and it was fixed