So, im broke and have limited funds, don't want to shell out for a new transfer case, and quite literally never have to use 4 wheel drive, my question becomes, what all would I have to do except change out the tail housing on my 02 Z71 and drive shaft? Would it cause any computer issues? I'm currently dealing with a hell of a noise coming from low fluid (it already was low and just broke the gears on my way to work today) and except for noise, what are the chances it could grenade itself or just be loud as hell when I drive it?

 

I think tranny + driveshaft rework, potentially moving reprogramming speed sensors ... is all going to be pretty close in cost to a new transfer case.

If you ran it dry, chances of it grenading and whipping a chain around shredding everything in sight, is pretty high.