no promises...but
 

I ended up replacing the front outshaft bearing in the transfer case...noise is now gone!~

Any pics or hint on the process? I have a feeling I have to do the same. When the front wheels weren't powered, that noise went away. Did you have to remove the Xcase, and did you have to take it apart? Or can the bearing be drifted out?

I have a feeling the xcase has to get taken apart.

Where did you get the parts for this job anyway? Thanks.

operationx5Tcase
 

I originally thought it was a stretched chain hitting the side of the case....So -yes I removed the Tcase -easy-about a 1/2 hour w 2 guys, i split the case ,and found the chain was still taunt...Grrrrrrr.... started poking around and found a clunky bearing , hmmmmm , maybe, I took it to a local "bearings and drives" shop and matched the bearing... Ordered a new chain from cobra transmissions, and reassembled. No more vib or noise!!
I have a second Tcase that im going to split and rebuild... Ill be posting it 4 sale in a few weeks:thumbup:

Yea I have an Xdrive unit so a bit different. Going to inspect this soon.

Any updates?