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I don't know if you can drive it if transfer case blows. All I know is that I've been driving this car for over 6 months like this and it seems fine. No whining, crunching gears, grinding noises, etc. are coming from transfer case. I figure that maybe the servo motor is out so that 4wd is not engaging and it's just allowing front drive shaft to spin freely as it's not engaged.
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