Transfer case bearings ginding?

well i have a 97 xj 4.0 aw4 150,000mi and so on, i just intalled an RE 2in but i swaped in new leaf springs with the aal, i gaind about 3 inches in the rear and of 2 inches in the front, so it sits a little high in the back, but nyways after the lift when i am driveing down the road and i let off the gas i hear something make a grinding sound for a second and the same when i get back on the gas it grinds for a sec, sound like it is coming out of the back of the t/c,.... o and it also does it when i put shifter in neutral and free roll down the rd, so my question is has anyone else experinced this and what was it/ how do you fix it, i have a t/c drop on the way.

pleaz help its driving me nuts

Check the u-joints first. With the lift, you've changed the angle on them a bit which would highlight a bad joint.

You can always put the rear end up on jack stands, run it up to speed slowly and see if you can locate the noise.

http://www.naxja.org/forum/showthread.php?t=85503&highlight=grinding+after+lift

Its that bushing/bearing he is talking about. Do an SYE and your problem will be resolved. My SYE is getting installed next week.

Or you could fix it by getting some bias swampers...then you wont hear it anymore.

I had exactly the same problem on my '99 after a 2" lift..
Solved completely with a SYE and front DS on the rear, nice and smooth now