I have a 73 cj-5 that has a t-18 and model 20 transfer case. When I drive in 2wd and let off the gas it sounds like gears not meshing or grinding alittle. It does not do it in 4wd for now just 2wd. I looked under at the t-case and it looks like the shift rail on the passanger side is pushed in the case further than the one on the drivers side. I am wondering if it may be out of adjustment alittle and is not quit in gear. Any one have this problem before? I have the stock shifter know but was thinking maybe doing a twin stick later this winter. Any one have any ideas on what to check???

I had a similar sound come out of my d20 that was behind a t15 a couple of years ago. I had taken it out in the snow and found a ditch i did not know was there before. After backing out of the ditch, i had the same noise. Turns out the front drive shaft was a bit too long and the shock from falling in the ditch compressed it too far and damaged the tcase. Long story short, i ran it like this for a couple of weeks, and then one day while in 2wd it spit the entire rear drive section out on the road. I limped home in 4lo with only part of the front of the tcase remaining intact. Upon further inspection, i found that the transmission output, tcase input, and the rear drive section had all been eaten. I assume i had bent a shift fork and it engaged low and high at the same time on it's own. I would pull it apart asap. That was a long, slow drive home.