Four problems related to transfer case have been reported for the 1997 Jeep Wrangler. The most recently reported issues are listed below.
Noticed wobble underneath while driving. Inspected underneath and noticed light showing between transfer case skid plate and frame (should be tight) and bolt hanging down. Took into shop and lower mid frame on both sides is completely rusted through allowing skid plate bolts to fall out with nuts still attached. Skid plate also serves as transfer case mount and when it drops the driveshaft wobbles. Ultimately if it had completely let go on the highway the rear driveshaft would have locked up and locked the rear wheels causing uncontrolled skid, or the driveshaft would break causing danger to the passengers.
The vehicle experienced a leak from the transfer case and other transmission problems. Nlm.
Design of skid plate over the transfer case and exhaust causes it to act like a shovel pan cutting grass off road and depositing it there causing the grass to burn.
The faulty transfer case causes severe shaking of the entire transfer case and front driveshaft when accelerating from a dead stop, the driveshaft and crushed transfer case mount were replaced but this did not solve the problem. Nlm.