Could just be a bearing, the rest maybe fine, these things are suppose to be pretty tough. Manual/transfer cases are not that hard to build, basic mechanical operation with a few special disassembly/reassembly procedures in some cases and few clearences to check. Get a book or google the rebuild and then jump in it, its broke now so you really cant do anymore damage and you will learn something even if you never reassemble it. Just a thought.
Careful your character's showing