Nah, the d2 has gears, just like the D1. They just change some stuff to reduce the noise. The only chains I know of are on the Borg Warner cases in the range rovers.

 

Update: I took the drain plug off and there were a lot of metal shavings and pieces, some as big as 1/4 inch. I didn't have time to take off the bottom plate to look inside but the amount of damage seems obvious even without looking inside. I'm going to start looking around local junkyards first for a replacement. My logic is that if I buy something off a donnor truck that I can inspect first hand, I have a better chance of getting a better part, ie without similar signs of wear/damage. The alternative is to buy something online or of course getting a rebuilt transfer installed for $1400 with a one year warranty from a guy who knows these trucks pretty well. Ultimately I don't mind paying that amount if I can get another 50k-100k miles out of it. Thats the big IF.

 

Price a used one thru Paul Grant or Will Tillery yet?

There are several on-line rebuilders that do specialize in the Discovery TC's. Worth doing some research to decide.

 

1996-1999 Discovery I Transfer Case - Automatic (Professionally Rebuilt)

1996-1999 Discovery I Transfer Case - Automatic (Professionally Rebuilt)

Toddco has very interesting options available to change gearing and even convert the vehicle from 4wd to 2wd for highway and be able to reengage 4wd as needed via the cdl. Check this page out!
Land Rover Axles Transfer Case Gears Differentials

 

I found a replacement in good shape. I've pulled the old transfer case and I'm ready to install the replacement. I've found some differences in numbers, I'm thinking it's no biggie sice the dimensions are all the same. But just the same, I'm including some pics of the different numbers I found and of course, pics of the two TC's. .....crap, I can't upload from my phone. I'll have to upload tomorrow. Stay tuned. The replacement looks great though, and the old one is definitely shot. Pics tomorrow will tell the story.

 

Glad youy found a replacement, are you going to pull it's inspectin plate and look at it before you install? There is a good thread on here about how to reseal it if you do.

I would take a look at both of them if it was me.

 

And if the new one had the linkage installed you may be able to resell the extra CDL shift linkage if you have one, A DII owner may want it to upgrade his to CDL capable.

 

I took the plates off both and took side by side pics. The replacement looks great. Already sealed it, I had previously read the reseal thread. Thanks. I'm going with synthetic fluid. Should I go with Lucas or Royal Purple? Any preferences?

 

If I recall, I used the Mobil One Synthetic 85-140w last time I did my T/C. That was two years ago now and it is still nice and quiet, but I do not put a lot of miles on mine each year.

 

The truck is back on the road. Transfer case worked out great, much quieter than the old busted one. While I was at it I also changed the 4 ujoints, changed all the final drive fluids, repacked the bearings with grease, replaced the brake pads and resurfaced the rotors. The brakes still feel a little weak after doing all that. I bled the lines and it helped a little, but I'm not too confident with them.

On a weird side note, when I drove the truck again the check engine light came on. The code I got is P1316. I've been reading about it and I get a lot of different information about it. I don't understand what might have caused it to come on. Maybe because I took part of the exhaust off when I removed/replaced the transfer? I read in another thread that busted manifold gaskets can trigger that code. Maybe the gaskets were weak and the little movement was more than they could take. Not sure what it could be, but the light never came on before.