Putting the tcase in neutral with rear driveshaft connected - not good!
The typical 3rd gen part-time transfer case has a pump in it, driven from the input shaft. So, if you put the tcase in neutral with the rear drive shaft still connected, the tcase will be running dry and risk damage. Also, to put the tcase in neutral you first have to shift it to the 4wd position, so the front drive shaft is locked to the rear drive shaft, and will be spinning as well. The ADD will be connected, so the front and rear axles will be connected together. Not a good thing on dry pavement.
Putting the transmission in neutral and tcase in H2 with rear driveshaft connected - not good!
In this case the output shaft of the tranny is spinning. The tranny also has an oil pump driven by the input shaft. With the tranny in neutral, the output section will be spinning with poor lubrication and risk damage.
Tcase in H2, rear driveshaft disconnected - good!
With the tcase in H2, the ADD in the front diff is disconnected. The front end is operating exactly the same as when you are driving down the highway in 2wd. The front drive shaft will be motionless. The only things spinning up front are the CV half-shafts and the spider gears in the diff. They're made to do just that and get plenty of splash lubrication. With the rear drive shaft disconnected, the tcase and tranny are motionless. The rear diff is spinning and getting splash lubrication just as it does in normal driving operation.
The typical 3rd gen part-time transfer case has a pump in it, driven from the input shaft. So, if you put the tcase in neutral with the rear drive shaft still connected, the tcase will be running dry and risk damage. Also, to put the tcase in neutral you first have to shift it to the 4wd position, so the front drive shaft is locked to the rear drive shaft, and will be spinning as well. The ADD will be connected, so the front and rear axles will be connected together. Not a good thing on dry pavement.
Putting the transmission in neutral and tcase in H2 with rear driveshaft connected - not good!
In this case the output shaft of the tranny is spinning. The tranny also has an oil pump driven by the input shaft. With the tranny in neutral, the output section will be spinning with poor lubrication and risk damage.
Tcase in H2, rear driveshaft disconnected - good!
With the tcase in H2, the ADD in the front diff is disconnected. The front end is operating exactly the same as when you are driving down the highway in 2wd. The front drive shaft will be motionless. The only things spinning up front are the CV half-shafts and the spider gears in the diff. They're made to do just that and get plenty of splash lubrication. With the rear drive shaft disconnected, the tcase and tranny are motionless. The rear diff is spinning and getting splash lubrication just as it does in normal driving operation.