Possible Blown Transmission??

[78mc-bbc]

I am a newbie here and i just picked up a 96 4x4 LT "Ho" with 148k miles it runs great and everything, has maintenance receipts going back to 99'. so i figured it was a good buy and a great price too.

Well after about 1k miles later i was turning a corner from a stop light and i get a massive grinding noise, like i had a stick shift and was shifting it with no clutch engaged. So i pull off the road, look underneath for anything weird, check all the fluids and all are fine, nice red transmission fluid. I try to put the truck in reverse and the grinding noise is back and loud as hell, i didn't even try to back it up. I immediately put it back into park. Strange thing though that second i had it in reverse i saw the speedometer move to like 15 mph?? I pushed the track back and tried putting it into drive, well it worked, no noise so i figured at least i can get it home, but nope as soon as i got to like 15mph the griding came back, not as bad but definitely there, so i pulled off and it got towed to my mechanics place.

From reading the various forums and the tow guy, some are telling me its the transfer case, possible the broken stock snap-ring? My mechanic has had it since Saturday afternoon, so i doublt its been looked at yet, he was going to remove the transmission and t-case and look at them?

So what do you guys think it is?

 

[Mean Green]

I'd have to lean towards the transfer case, thats what it sounds like to me anyway.

 

[FastOrange]

check to make sure the transfer case is in gear and not neutral.

 

[Mean Green]

X2 ^^^^ A friend of mine had a 94' Chevy that the transfer case would pop into neutral at random times.

 

[badazzbulldog]

check the tail housing on the transfer case my sons 98 gmc 1500 cracked where it bolts to the case and was making that noise i removed it put a used one i had on it and replaced the u joint that caused the crack

 

[78mc-bbc]

so i talked to my mechanic and he said the transmission is shot, the transfer case looked to have already been rebuilt.

so does anyone know if a 4L60E out of a 97 blazer will fit a 96 Tahoe? also do i have to have one with the built in bellhousing or can i use one with the bolton bellhousing?