96 SE7 Stock 150k+. Makes a grinding noise in Neutral and Park; from underneath in Drive or Reverse no noise - in Nuetral I can see the front driveshaft try to turn; no noises with TRansfer Case in Neutral, Transmission in Drive or Reverse...
Sooooooo... ANY HELP?
Thinking possibly Nuetral Safety Switch?

 

It’s probably a bearing in one of your pulleys. Follow your drive belt with your ear while the engine’s on and hear which one of the pulleys is especially loud.

My disco had a bad a/c clutch bearing, I think that’s the most common one for this issue. I would always have an annoying grinding noise at idle. I just removed the pulley, hammered out the old bearing (very rusted in), and put a new one in. The difference was night and day!

 

check for full engagement of transfer shifter. i’ve had it happen 3 times now. binoculars block full travel of shifter and the partial meshing of gears is evident in park or neutral. probably time for a little lubrication too!