Originally Posted by SteveH
If there's nothing loose in your xfer case that's jamming things, could your parking brake be engaging randomly due to loose shoes or too-tight shoes? Could there be an unrelated problem in your rear axle that coincidentally showed up at this time, such as a loose pinion nut?
I guess anything is possible but I really think that I messed something up either installing the transfer case's new rear output shaft with parking drum or mating the t/c to the tranny. Prior to pulling the t/c apart I adjusted the parking brake to both extremes and nothing changed. Axle wise, everything seems fine when it's up on jack stands and there were no issues prior to the swap.