Re: Grinding transfer case
That happens to my S-10, although only when I use 4LO and hit neutral on the way back to 2HI. There's a procedure to adjust the transfer case shift lever. If I remember correctly you remove the console and theres a rubber boot and a grease zerk fitting on the Xcase shifter, then theres also a bolt with a nut on the end of it. This bolt is what adjusts the linkage. I think you put it into 4Hi and adjust it, then tighten the bolt. I did this to try and fix my 4WD when I bought mine in '98(turned out to be the actautor cable!). Also a good time to replace the vacuum switch before it craps out(which it will at the worst possible moment!)The grinding shouldn't be happening in anything but going from N to a position, as the rest have synchronizers to keep from grinding. You are shifting in a swift, precise motion right? Good luck.
1989 S-10 4x4 4.3L/700R-4, 3.08s, 31" Sport Kings
1989 Blazer 4x4 4.3L/700R-4 3.42s,235 Sport Tracks
1985 S-10 4x4 Soon to have 3504BM/TH350/D44/14FF, 35" Boggers