Originally Posted by stratplaya06
Get ready to replace your transfer case motor. Those are the exact symptoms I had both times I replaced it. If you're under warranty have them do it, otherwise I would recommend sourcing a second hand part and giving the job a shot yourself (or having an indy do it). It's literally a two minute job once you're under the car, and stealership will likely charge you $800+ for the job given that just the part at the dealer is over $600. I was able to find a full tcase with the motor for $200 out of a wrecked 328xi and the second motor I got from a recycler for $125+S&H. The extra unreliability that comes with the xdrive cars is real (and expensive if handled at the stealer), but the parts are easily found second hand given that all AWD e9x/e6x use the same drivetrain parts.
Fortunately i'm still under the 80 000km warranty and the car is CPO till march 2015 if not mistaken so I'm really not nervous about cost for now just hoping that the error come back so that they can change the motor or the t-case