"New Transfer case" ARE U SURE?
 

Good day, gentlemen

I'm having some problems with a car right now and I thought maybe you have a spare second to share your experience with me.
I have an ugly sound coming from the down of my car. Around the Transfer case. Its a metal-on-metal, bearing strip-like sound. Like two non lubricated plates scratching each other with frequency of sound increasing depending on speed. Very Very loud. It comes only when under the load. If I put neutral and just ride without any gear put – no sound. So it makes sense thats its not a brake or cv thing. My dealer says Its Transfer-case inside sound, but it gives no errors(should it?). I thought maybe it could be a shaft. Splines could be worn etc.
Any chance to check it? I just dont want to buy an item which costs around 2-3k and that is simple as it is, so just trying(hoping) to locate a problem in different place.

X5 2001 3.0 manual 110k miles

You might want to check with Weasel56, he had a good comment about a similar issue on an X5 that was shaking intermittantly. He said to unplug the wire going to the electric motor on the driver's side of the transfer case; which would essentially put the vehicle in 2WD mode (rear wheel drive).

Of course your problem is different since it's a grinding/scratching noise rather than intermittant shaking, but it's certainly worth a shot.

Here is the link to the other discussion if you want to read it:

http://www.xoutpost.com/x5-e53-forum/...wobbly-x5.html

tough call..... I'd make sure you have the drive shafts clear of any debris like the heat shield along your exhaust, etc.
Get it up on a lift and check your fluid levels in your tranny and trans case. If all those are good, then by process of elimination your trans case is going bad.