My question is, if the transfer case dogs are bad (having this rebuilt very soon) and it pops out of reverse and 2wd and 4wd and low occasionally out of gear as well, would this have any affect on the transmission? If I didn't know any better it's driving around in second gear all the time.But the transmission was just rebuilt (basics) along with the internals of the engine... What would cause this, or will fixing the transfer case solve my problem.

 

any thoughts?