Originally Posted by bluedaffy
Great, thanks so much. Should I be concerned about the bushing being damaged or faulty because it already came off once and will do it again? Or does this kind of thing happen from time to time?
The piece of rubber sticking out of the tcase shifter handle is called the shifter isolator. I just had to replace it in my YJ. If that piece of rubber isnt properly seated, it will allow the handle to pop off completely. There is a write up on how to permanently fix this problem. It does involve using a welder and such.
Pull your tcase shifter off and see if the metal clip is in there. You should see a 4 pronged clip between the actual handle and the rubber piece. The "teeth" of that metal clip grips the notches on the tcase's "straight" handle. On the side of the L shaped handle, you will see that the metal clip inside has two tabs that are supposed to lock the metal clip onto the handle.
Its a crummy design to start with.