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My dealer had an H2 that had the same problem. Here is what happened...the bearings were put in backwards when they installed them and it caused the transfer cases to fail. I guess that's what happens when you don't pay attention to details. If you get a chance to see your bearings you'll see that its quite easy to put them in the wrong way.
Gary
Finlayson, MN
Respectfully yours,
Gary
Finlayson, MN
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