[speccop]

Well...got to the source of my problem, the vacuum actuator on the front axel is bad but there was still the grinding metal problem in my transfer case. My brother-in-law and I pulled the transfer case out...broke it down and discovered that the lock-up hub assembly was cracked and half of the teeth were ground off so it would go into 4x4 until you broke traction then it wouldn't work and just sit there and grind in the T-case while your rear tires spin. Not sure which came first the T-case damage or the actuator failing but they are both related as far as timeline is concerned.

Now I just have to track down the parts, this is gonna be fun...NOT.

I'll post more when I find the parts and get it back together.