Moses, your detailed knowledge of this trans is unbelievable! The Loctite 640 solution was just that, a solution. I was able to get the trans back together this evening. Next day off I am going to break down the transfer case and throw some new bearings in it, marry the two and reinstall in the jeep. Sounds easy enough, but because this TJ was abused by its previous owner (no maintenance) I'm sure to find some additional wear in there too. Thanks for your advice.