Last snow storm I was driving home from work in 4 wheel drive. I was doing about 45 MPH when I heard a pop. Then my transfer case started making noise. I popped it out of 4 wheel drive and the noise stopped. I creeped home in 2 wheel drive. When I got out of the truck I smelled burnt transmission fluid. I checked the transmission fluid and it was fine. I'm thinking that I broke the rear output shaft c-clip, but from what I read here if that's the problem, putting the transfer case in 4 wheel drive the noise should stop. I have the opposite. I bought the Gilley's Transfer Case Saver but never got around to installing it. If this is my problem I'll be kicking myself in the ass. Correct me if I'm wrong, if the c-clip breaks and the output shaft moves, doesn't this stop the pump from turning? This would explain my burnt fluid smell. I haven't really looked at it as the temperature has been pretty cold. I'm debating what to do. It's a 241LD case. I'm thinking of pulling the case, getting a rebuild kit, and upgrading the chain. Any help would be greatly appreciated. Thanks, -Glen