Figure I'd add these here. I never had time to take apart the old motor to look to see what failed. Before I had a chance I sold and mailed it off to another forum member to use for development work. From the below pictures you can tell the worm gear is actually metal and not plastic like other rumors have mentioned. From his inspection he isn't sure why it failed because it was metal on metal and there was enough proper lubrication. My transfer case was never replaced, I only replaced the motor and the car ran fine since then.
2008 335xi Sedan | Titanium Silver | Black Dakota
PROcede v5 | Vishnu Exhaust | BMS DCI | AR Catless DPs | Helix FMIC | Stett Charge w/ Tial BOV | MORR VS8s | KWv3