Thanks for your reply. When you engage the four wheel drive then turn the wheel, there is a very loud growling/grinding noise. The strange part is that it just happened out of the blue. I only use it in during the winter months when it snows.
Anyway, I took it in and had the diff fluid drained and was told there were large metal shavings present so at minimum they are thinking outer bearings but say it could be much more significant as well if there is damage to gears etc. He did say that he was surprised that at 110K, there would be that kind of trouble with the diff, especially since it's a K2500. I had him also change the transfer case fluid and he said it was very dark so he thought perhaps a clutch was going there as well. I bought it with 80K and was told the front end had been fully serviced; apparently not.
Based upon your feedback and some of the other info I have read, I will probably just take it in and have it repaired. Sounds like I could potentially screw it up more if it's not shimmed properly.
Thanks for your time.
Saturday, October 18th, 2008 AT 8:54 AM