What is this in my transfer case?

I opened up my transfer case and found a bunch of hard, plastic-y shavings. The were clear/yellowish in color. I can't figure out where they came from and what I may need to replace. It looks like pieces of hard plastic got chewed up in there. Also, my oil pump strainer is clogged up with small metal shards. At what point do I need to worry about there being too much metal in the bottom of the t-case for everything to be working correctly?
Thanks

metal is bad obviously..the question is how much is too much. i would look into grabbing another case...just my .02

There are nylon slide pads on the shift forks. They wear out and shatter. Normally you can just get new pads and everything is fine. If the shift forks are worn too much, you will need to replace the forks. Lots of folks have them laying around after scavenging a bunch of tcases. I have a fork if you need one, but check local people first.

http://www.4wd.com/productdetails.aspx?jeep-sid=0&plID=315&partID=57943

The plastic is more than likely the remains of the nylon pads that are on the shifting fork which engages the front driveshaft.
The metal shavings as you probably have guessed; are not good...
They are probably coming from the shifting fork since the nylon pads are now missing.
It is time to remove the transfercase clean in out thoroughly and at the very least replace the shifting fork and pads. Although since the transfercase is now removed from the vehicle; I would suggest rebuilding the transfercase or maybe upgrading the internal parts such as the chain& gears, planetary gear set and short shaft kit.
Could also just purchase a rebuilt or new transfer case from Advance Adapters and swap them out.

John you beat me by a few seconds....

PEOPLE, PEOPLE, PEOPLE--basics! Year/engine/t-case! At least share with the class WHAT T-CASE YOU HAVE?

While I agree with the diagnosis--shift fork(s) and pads, some of the assistance people are trying to give may not work out if you have an NP242 or another earlier t-case.

IF you have an NP231, you could upgrade at a salvage yard for maybe 10 percent of what a new transfer case would run you.

Here is a link to the Junkyard Upgrades thread: http://naxja.org/forum/showthread.php?t=66012

Keep in mind there are different spline counts for different years--what do you know, another GOOD REASON to provide the basic info.

My bad about the make/ model. Its a NP231 out of a 2000. Thanks for the help so far; I'll take a closer look at the shift fork when I get home from work.