I wouldn't give up or be too pessimistic even if it is worse case (transfer case). I found a spare used one through this site for cheap. All I needed was the flange to have a custom double Cardin driveshaft made from High Angle Driveline, but plan on keeping the spare t-case as a spare. Good used t-cases should be available somewhere around the country, keep us updated, I hope it turns up not too bad to resolve.