Hey,
Just got my 98 XJ. It make a nice noise while driving from the transfer case. It get worse when accelerating, and gets way better when decelerating. I thought the noise is directly related to the speed of the jeep, but when I switch the transfer case into N, as the cars rolling at about 20, and I put the jeep in gear and keep the revs up a little, the noise is directly tied into the speed of the transmission output shaft.
I don't know very much at all about transfer cases, especially in regards to what /where it actually disconnects I put t-case in N. All I know so far is that with it in Neutral, the noise follows the transmission speed, with it engaged in either 2 or 4by , it follows the vehicle's actual speed.
Any ideas what it could be? My simple brain is thinking transfer case input shaft bearing, or may be chain ( if that even spins with it in N?