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NP208 Help

C

CACRWLR

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I'm putting my NP208 back together after a rebuild and have come across an odd issue. When I torque the tail housing down onto the case, the t-case binds up when in Neutral and 4L. It spins freely and correctly in 2H and 4H though. If I take the tail housing off or just loosen it, then the t-case will spin and shift correctly in all of the ranges. Any ideas what might be causing this?
 
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