yo Ryan,
Is it the Manually shifted BW 1356 or the Touch Drive (electric shift)?
Were you in 4x4 High during the incidents?
1356 Electric Shift Operational Test; "... (engine off, hubs disengaged), crawl under the truck with the transfer case in 2HI, you should be able to grab the front drive shaft and turn it by hand. Also with the hubs disengaged you should see the front axles turning freely. Now engage the hubs and you should not be able to turn the drive shaft by hand. Jack the front wheels off the ground with the hubs engaged, turn the drive shaft by hand, the wheels should turn. The 4x4 light should not be on in 2HI, when in 4LOW you may have a low range light on, (not all trucks have that light) at least mine doesn't..."
Source: by Seabronc (Rosie, Fred W) at Ford Bronco Zone Forums
TAKE TIME to Read this; most seem to skip over bec they have said it is too long to read.
Four Wheel Drive (4X4) General Information, Operation & Troubleshooting TSB 92-1-8 for Bronco, F Series & Ranger (COMPLETE); Includes Electric Shift On The Fly (ESOF) Troubleshooting & Hub Operation; same for 87-96; exc for that in 87; power from Fuse 6 (15 amp) to "ELECT SHIFT CONTROL MOD" WHT-PPL and CB 12 (30amp) to "ELECT SHIFT CONTROL MOD" BLK-WHT; SEE A7 and A8 in the 4x4 diagram, it shows those two wires BLK-WHT as BK/W from SHIFT MODULE to P1 BATTY and and WHT-PPL as W/P to P2 Source: by Chilton
Could be the 1356 clutch or..
see page 8
such as; "...Shift From 2H to 4H Results in Chatter and Clicking Noises From The Module, But No Shift
Typically, in this situation the motor hunts for 4H, but overshoots, then hunts back and overshoots the other way. After 7-10 seconds, with lots of clicks and chatter, the module gives up and returns to the default, which is 2H. This problem is normally not the sensor input. It is usually the result of the motor running too fast or braking too slowly to allow the module to position it accurately. The motor must be replaced.
Shifting on the Fly Isn't Smooth and May Require Stopping in Order to Complete the Shift
Look for problems with the electric magnetic clutch. If the racheting or grinding goes on for more than four seconds, there may be a problem with power to the clutch from the shift control module, the clutch ground or the clutch itself. Check the wiring harness as well..:
etc,