Forgot to update this after my last post. Turns out Ricky Bobby's diagnosis was right about the rear axles coming out of the diff. When it was on the lift they were not really noticeable, but when you set it down and drove it for a while they would work themselves out. My mechanic used a hammer and socket extension to pop them back in place. Been over a week now and they haven't popped out again. I'm glad it wasn't the transfer case like we originally thought. Thank you for all the help. I really like this site.