Two problems related to transfer case have been reported for the 2003 Ford F-350. The most recently reported issues are listed below.
Sales of a vehicle with supporting VIN data not matched to actual equipment received. This mismatched data has caused the wrongful ordering and installing of a replacement rear gear ratio that does not match up with the front ratio while in four wheel drive. This mismatch causes a bind on the transfer case which could explode and cause personal injury. Of course this might be a one time problem, but more than likely under modern manufacturing processes there could be an entire series of truck produced.
Shift on the fly 4wd system does not engage properly on the truck. When selecting 4wd and traveling under the owners manual required speed the vehicle takes over 2. 5 miles to engage or not at all. The truck has been to the dealer 2 times with no problems found. I video taped the incident at the end of February and no I cannot get the dealer to call me back at all. If the switch is left on and the unit does not engage I am afraid I will exceed the max recommended speed then the unit will attempt engagement and damage the 4wd.