Transfer Case problem

[Markymak]

1995 4 Runner Automatic V6 3.0. I am wondering if there is anything electronic on the transfer case that can go bad. Drives like a dream for about 4 miles. After 4 miles it makes a clicking noise in my dash board. Then when I am coming to let off the accelerator the transfer case goes into a spinning grinding noise and when i stop it pops to normal. When I put the truck in 4X4 it doesn't do it at all. It drives fine in 4X4.
A friend told me the transfer case is married to the Transmission. Please advise.

 

[fourwd1]

Look on your VIN plate, lower right corner IIRC, and get your transmission code, should be A340x, what is the x on yours?

 

[fourwd1]

Also going to move this to the Classics section for you.

 

[Markymak]

Transmission 340H

 

[Hyde802]

Good read on the a340 trans

A340 Transmission issues and FAQs - Pirate4x4.Com : 4x4 and Off-Road Forum

 

[penbergm]

I don't think that transmission is married to the transfer case but I could be wrong. My son had the same thing on his '88. It was the speedo cable. Quick test:
Climb underneath and disconnect the speedo cable where it comes into the transfer case.
Drive it and see if the noise goes away.
If so, it could be the cable but is more likely the gear that the cable attaches to.