I have a 1995 4 Runner V6 SR5 with a Automatic transmission. The Transfer case is married to the transmission. I'm having problems with the truck while I drive in H2. When I slow down and brake there is something spinning under the truck with a Bzz noise and when I come to a stop the truck it engages into place and is back to normal and I can drive fine with all gears. I hear clicking noises coming from the dash speedometer area while I am driving in H2 only.
Now I've learned recently these symptoms do not occur when I drive in H4 or L4. I hear from talking with some people that this sounds like a transfer case problem. With hearing the clicking in the dash and not hearing the clicking when I'm in 4x4 I am curious if there may be just a bad sensor on the truck cause the transfer case to spinn when I am slowing down in H2. I hope this makes sense to someone and get some direction on how to repair. I hope I don't have to have the transfer case and Tranny rebuilt. ($2500 quote so far) I live in So Cal near Edwards AFB. Thanks in advance!

Try disconnecting the speedo cable from the t-case and see if it goes away.

Also going to move this to the Classics section.

Thanks, I will check on this.