First, a u-joint or pinion bearing can and do make exactly the noises you describe under the exact conditions yours is doing it. I can't say definitively that it's your problem without hearing the noise, but as you've described it, that's my best guess. Even though they are rotating at all speeds, neither problem will make noise all the time.
Just trying to follow your logic: If the GEM was mistakenly calling for 4wd engagement only when you're decelerating, and you're convinced that's the case, then why would locking it into 4high make the problem disappear? You stated earlier that if you lock it into 4 high, the sound goes away, didn't you?
Finally, once again, IF YOU ARE CONVINCED IT'S THE TRANSFER CASE MOTOR, UNPLUG THE DAMN THING AND TAKE IT FOR A DRIVE!!!!! TAKE THE WHOLE MOTOR OFF FOR THAT MATTER, AND TAKE IT FOR A DRIVE!!
With no power to it, it cannot, under any circumstances, move the shift rod, WHICH DOESN'T MOVE TO ENGAGE 4HIGH ANYWAYS!!!
Under any of the following conditions, the GEM will increase the duty cycle in order to prevent or control slip:
Slip is detected (by using the Hall Effect Sensors)
Heavy acceleration.
Very light or zero throttle at speeds above 25 km/h (40 mph)
Ha! this must be it. thats why when i use brakes it doesn't trigger it. cause its not slipping enough for it to be detected. now i just have to figure out what exactly is messed up lol
What would using the brakes have to do with it?? If anything detected slip while using the brakes, it would be the ABS, not the Control Trac, and it would be pulsing the ABS, not activating the traction control. Two separate systems active at two different times.
i mean how can i go 70 mph and not hear the noise if i slow down with the brakes or while i am accelerating to 70 mph or any speed? this has to be it! since i hear the noise at 30-35 it must be pretty messed up. perhaps its the gem switch thats messed up.
Driveline components do just that. There are certain frequencies that they will make noise, and certain frequencies that they will not. Certain frequencies will cause a vibroation, others will run smooth. It's a dynamic system, and each component will generate its own set of excitations.
I surrender.... Do whatever you want... I'm throwing in the towel on this one.