Yesterday had the transfer case off and mostly pulled apart, thanks heaps to RickP (who doesn't read this forum and won't know that I've thanked him here) for his help.
Our transfer case doesn't seem to have any dished thrust bearings underneath any of the planetary gears in the diff. I suspect somebody has been in there while we weren't looking, taken them up, broken them up into very small pieces, and distributed them throughout the transfer case. Must up the security in the driveway...
It looks like we got it just as the teeth of the gears were starting to interfere with the diff housing itself. If you look at the tips of some of the gears, you can see nicely polished edges where they have started to rub.
So obviously the cause of the noise, and the reason why there was no noise when the diff was locked.
Time for the rebuild kit. After a fairly good look at all the gears, there didn't look to be any damage that would warrant replacing anything. The ATB diff does look very nice, but I don't think I can justify the cost, even if they did have any in stock.
What is odd is that I didn't discover any metal in the oil coming out of the box. But there were fragments everywhere, including just inside the lip of the input seal on the top of the box. That oil certainly does get thrown around in there.
Thank you all for your advice and suggestions. I'll update after I get the parts and start the rebuild.
Cheers!
Michael.

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