It will be on the transfer intermediate shaft. Some things it could be (presuming it's a normal roller bearing model and not a TRB setup). Either the shims need adjusting,the engaging dogs on hi range are worn, the engaging dogs on the input gear(selector gear) are worn or selectors are out of adjustment. You mention you have checked the selector adjustment. How did you check it? The usual culprit is endfloat on the intermediate shaft from out of adjustment thrusts.
Cheers......Brian
1985 110 V8 County
1998 110 Perentie GS Cargo 6X6 ARN 202516 (Brutus)
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