Kiss of death lights (Transfer case) ???

[Quino]

Guys - your help is appreciated...

While driving to work the other day my 04 X3 3.0 6MT went through a self check or something. It kept engine power but the dash warning lights came on slowly one by one and then off. The headlights faded then went off. The radio faded the volume then went off. The speedometer went to 0 mph. The ABS light, then the yellow brake light, the RED brake light, the 4x4, and so on...Then everything started to come back and continued driving no problems. Very Weird. My diagnosis was that maybe the alternator went through some sort of hiccup since I had just changed the original battery a couple of days before...

My understanding is that there is actually a warning light for a bad alternator.

So recently I had the ABS (yellow) Brake (red) and 4x4 (yellow) lights come on. I did some research here and there and did the left to right wheel steering lock to lock turns. Coincidentally or not - the lights went off on my next start.

I found some info on threads that describe these three lights as the kiss of death for the transfer case in the AWD system. I had not heard any kind of whining noise nor had I felt any resistance when backing up - UNTIL two days ago when the lights came on at engine start. As I started to back up i did feel some resistance but did not pushed through it. I drove a little more and as I made a tight turn I heard the rougher noise that would go away when I pressed the clutch pedal. The lights went out minutes later after a couple of engine off/starts/drives. When the lights are off I do not feel any resistance at all. The lights have been off for the last three days.

So my questions...If I have a bad case - it is always bad - not comes and goes - correct?

Although I guess that maybe electronics issues may come and go. I'm thinking that if a gear was broken I would always feel it - not just sometimes...

If the lights come on again and stay on - what damage am I doing?
My understanding is that the car would be lock on AWD so mileage would drop - but is it an emergency?

Should I run and get transfer case oil changed immediately?
I read that there had been a TBS for dealers to do this to some 04 models - but they never did to mine.

Any thoughts...?


Thanks for your help.