yo Pat,
1356 Clunk or Thump on Take-Off;
Source: by Mike W at atra.com via web.archive.org via miesk5
"Another common complaint of the 1356 is that it will sometimes exhibit a driveline thump or clunk on take off. Many shops have spent considerable time balancing drive shafts, replacing u-joints, mounts, etc. without success. The problem lies inside the transfer case itself. A careful examination of the rear output shaft will reveal excessive end play between the shaft and the rear bearing, and between the rear bearing and the extension housing. You should use shims to take up the endplay between the output shaft and the rear bearing retaining snap ring (figure 7). You can use Chrysler part #00015128 for a shim kit that will enable you to take up the endplay between the bearing and the output shaft snap ring...Figure 8 shows how to take up slack between the rear output bearing and the extension housing using Spicer shim kit 701121X which fits the outside of the bearing and prevents it from traveling rearward against the extension housing. This shim is designed for a pinion shim in a Dana 35 rear end and fits perfectly. By using these methods to fix the endplay of the output shaft you will solve many problems that have baffled dealers and other repair shops for years..."
http://atraonline.com/gears/2001/2001-09/taming.html
How is the rear driveshaft's slip joint? Is boot damaged or missing? Can Grease that area.
GREASING;
This is how FORD describes it;
cut the driveshaft slip yoke boot clamps (4K227) with sidecutters. Remove and discard the clamps
Separate the driveshaft slip yoke (4841) from the splined stub shaft on the driveshaft.
Remove the slip yoke boot. Inspect the slip yoke boot for rips or holes and replace if required.
If, during inspection, the driveshaft and coupling shaft boot is found to be cracked or split, the grease should be checked for contamination. Check the lubricant by rubbing between two fingers. Any gritty feeling indicates a contaminated driveshaft slip yoke and stub shaft. If driveshaft (4602) is operating satisfactorily and the grease does not appear to be contaminated, add grease as described in the assembly portion of this procedure and replace the slip yoke boot. If the grease appears contaminated, disassemble the driveshaft, clean and inspect the stub shaft and driveshaft slip yoke for wear. If splines are excessively worn, replace driveshaft.
If required, remove and replace the U-joints.
Assembly
Install the slip yoke boot with the small diameter side facing the splined stub shaft on the stub shaft. Push the slip yoke boot as far as it will travel on the stub shaft.
Install a small driveshaft slip yoke boot clamp and crimp the clamp using Keystone Clamp Pliers T63P-9171-A.
Compress the slip yoke boot and coat the stub shaft splines with Premium Long-Life Grease XG-1-C or -K or equivalent meeting Ford specification ESA-M1C75-B.
Fill the slip yoke boot with approximately 10 grams of Premium Long-Life Grease XG-1-C or -K or equivalent meeting Ford specification ESA-M1C75-B.
Slide the large driveshaft slip yoke boot clamp onto the barrel of the driveshaft slip yoke.
Align the blind splines on the splined stub shaft and in the driveshaft slip yoke. Push the driveshaft slip yoke onto the stub shaft.
Remove all excess grease from the slip yoke boot and driveshaft slip yoke surfaces. Position the slip yoke boot over the driveshaft slip yoke boot groove.
Move the driveshaft slip yoke in or out in order to obtain the distance of 10 inches between stud shaft weld to the centerline of the driveshaft slip yoke U-joint
Before installing the new large slip yoke boot clamp, make sure that any air pressure which may have built up in the slip yoke boot is relieved. Carefully insert a screwdriver between the slip yoke boot and the driveshaft slip yoke and allow the trapped air to escape ("burp") from the slip yoke boot. THE AIR MUST BE RELEASED ONLY AFTER THE DRIVESHAFT IS SET AT THE SPECIFIED LENGTH
Position the new large driveshaft slip yoke boot clamp over the slip yoke boot and groove in the driveshaft slip yoke. Crimp the driveshaft slip yoke boot clamp with Keystone Clamp Pliers T63P-9171-A