I've been hearing a high pitched whirl coming from the truck for about 2 months and only at the 19-21mph range.

I then took the truck on a 400mile 4th of July vacation and came along an issue with "Transfer box neutral" alarm dinging and feeling a grinding noise when exiting from the freeway. This only happened when decelerating from 70mph on exit ramps. It would only last for a few seconds and quit.

A few days later I drove the truck 40 miles around town and heard nothing until almost returning home the truck began making an incredibly loud chirping noise! I could feel the tuck acting funny when this noise began so I pulled over and inspected underneath again. After seeing and finding nothing, I decided to limp it the rest of the way home. by the time I made it the next 3 miles, the truck is making a loud banging noise underneath.

Anyone have any idea??
Can I remove and by-pass the front driveshaft on a 2004 Disco2?

 

Yes. Remove front driveshaft, and lock the cdl. Take it for a SLOW spin. If the noise is gone you know at least which end its coming from.

That being said. I'm willing to bet that your problem will be very obvious when you go to remove the front shaft.

 

STOP DRIVING THIS THING before you put a large hole in your Automatic Transmission!!!
When the drive shaft U joint lets go, and it sounds like it will soon....it's going to be a very bad day.

 

X1 ........... another mile might give you an enormous bill for a new transmission. Find out why now before driving another inch.

 

I just removed the front propshaft and drove it around the neighborhood...

The driveshaft is tight as new with no play at all.

I heard a small chirp again while driving, but only 1 and nothing else.. I am going to run it again very slowly for a few miles to see if the starts the noise again..

 

Yes, I lost a drive shaft in my old CJ-7 on the highway once.. All hell broke loose and a new transmission was on order..
I won't do that here..

 

How is the fluid in the TC? Does it have any even in it? I would NOT drive that sucker another foot. Something is internally wrong inside the TC or with the front output section of the TC if most of the noise went away after you removed the front drive shaft. Now for giggles you "could" install the front drive shaft, leave the TC locked, and then remove the rear drive shaft and do a small/slow test drive to see if the noise comes back.

Also with the front drive shaft removed make sure the nut on the inside of the output flange is 100% tight. I've heard of at least one case where it made all kinds of racket under the D2 with a new front drive shaft. They inspected it again & boom found the nut holding the output flange loose causing it to rock when being rotated.

 

There is red fluid on the bolts holding the bellhousing inspection plate on.. I removed it yesterday and found one little piece of metal shaving on it.. I cleaned out the area with a rag and replaced the inspection plate.. Today I found more red fluid.. Its a very slow leak..

Does the TC not share with the transmission?? If not, that is probably my problem

 

There's no way to check the fluid in the TC is there?? Not without taking it out right?

 

Yes there is the fill plug close to the e brake drum that u get with a 1/2" ratchet. That's how you fill and check if the transfer case if full