I have a 1999 dodge 1500 4wd. The transfer case locked up when i put it in 4wheel. After looking closer i saw a crack in the transfer case. I got it back in two wheel drive but its making a grinding sound bad. Did i damage anything but the tranfer gears?
the unit is toast. It wasn't your fault. Take it back to where you got it from. Can't really say from here what got damaged, force them to do an inspection if this had a recall on it.
dodge had a recall on the transfer case from what i read. call the dealer and see if your truck fits in. this should be solved with a new t-case, or a new truck. Good Luck!
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