Three problems related to transfer case have been reported for the 1998 Mercedes Benz ML320. The most recently reported issues are listed below.
While applying the accelerator pedal heard a loud popping noise coming from the front. Vehicle vibrated uncontrollably. However, consumer was able to maintain control of the vehicle, and drove it to the dealer for inspection. Mechanic determined that the transfer case needed to be replaced.
Laundry list of failures. Jack has almost killed me while changing tire. Vehicle fell, almost hitting me but catching side of vehicle before landing on me! hood latch has failed on a few occasions, causing hood to open while vehicle was in motion. Air mass meter failed. Has required 5 (five!) alignments in two years. When brought to dealer's attention, was told nothing was wrong. A month later requires another alignment. Alignment problems causes wear on tires, which has caused hydroplaning and loss of control of vehicle. Vehicle swerves uncontrollably when hits anything other than flat road. Transfer case motor fixed by dealer without consulting. After repair, transfer case motor failed. Dealer states owner responsible for costs. Has had repair of harmonic balancer on front of engine due to excessive heat buildup leading to oil leak and failure of belt tensioner. Window switches have failed twice and fixed at expense of owner. Six different keys have failed @ the cost of $220/key. Rear window defroster causes loss of stereo reception. Rear window wiper motor has failed. Front end makes noise.
Transfer case failure. Front drive and passenger side wheels makes noise when making a turn from stop position or slow speed. Did some research and it turns out that this is a regular occurancy for the 1998-1999 Ml320.