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Did you lubricate the bearings before you buttoned it all back together? I started out driving mine in low range first, because the low range bearing will not spin and the high range gear will only spin at half the speed of the input shaft. My theory here was to let oil sling around with less...

Was it low on oil when you drained it? its the plug on the right side that points up a little bit. fill to the bottom of that hole. its about 7 quarts i think. someone might want to correct me if i am wrong.

That is the same thing i found in my transfer case. Check the counter shaft bearings and output shaft bearings. mine looked worn a bit so i opted to get new bearings since i drive the wheels right off my deuce. That was just me though. im sure they bearings would have gone a lot longer, but I...