Engine/Transmission (1994 - 1998) last transfer case question before it goes in.

[Piersol]

OK transfer case gurus. As I have posted before I have the transfer case rattle when it goes into OD. If you so much as turn the radio on or crack a window you don't hear it. I have the 241HD. The snap ring in the top seems to be in place and the bearing snap ring also appears in place. Fluid level is fine. 2 questions: 1. When I changed the fluid it looked like transmission fluid after a change. Very very fine metal. You could not feel it in your fingers. Is that normal? 2. If the noise is coming from the gears trying to go into 4wd and the snap ring is in place couldn't you just adjust the lever a little bit to keep them apart?