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Ray,my opinion is that what are generally all lumped together as transmission problems (bumping, slamming, etc) can be caused by engine DME issues, by the transmission itself, or by the transfer case. All the systems are integrated, so a problem in any one can cause a hesitation or hard shift that is usually blamed on the transmission. I think that sometimes it is the transmission, just not necessarily always.
If your mechanic is getting transfer case codes, and the actuator is suspect, I would go ahead and change it. I would check the wiring to the actuator closely. I would change the transfer case fluid at the same time, using the OE fluid. I would also reset the transfer case using the BMW computer, after changing the fluid. Good luck with it, let us know how it turns out. Jeff
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