One problem related to transfer case has been reported for the 2000 GMC Yukon. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2000 GMC Yukon based on all problems reported for the 2000 Yukon.
1) 4wd faulty encoder motor failure--switch to engage 4wd failed; occurred at 75,841 miles on 12/31/03 2) could not put vehicle into 4wd when on winding, narrow, snowy road; fortunately no accident. 3) 4wd faulty encoder motor replaced on 1/3/04, but we had to pay for it & 4wd rental car; $938. 46 & 180. 15, respectively note: I am now reporting this because an accident could have been fatal and I have just heard that other 4wd same SUV's, Yukons and chevy tahoes, have had the same problem, and the manufacturer refuses to recall this component.