I'm hearing a grinding noise right by the passenger side of the transfer case like the one in the video below so I am thinking it was the chain. I pulled the case and found out that the chain has tension and is not scrapping the bottom. While looking it over and cleaning out the internal components I spun the input planetary gear(the one closest to the transmission) and it spins ok but it seems to make a slight grinding noise and has a slight wobble as it spins around. Since I have never taken these things apart I am not sure if this is normal gear noise, the gears appear ok from the outside but I haven't taken apart the input bearing and planetary gear assembly. Any ideas? Thanks