One very common problem on these trucks is that the snap ring securing the rear output shaft is brittle and breaks off inside the tailhousing of the transfer case. This allows the output shaft to slide fore-and-aft in the case, which makes a horrible grinding sound and eventually damages things. The noise is most pronounced as you go over bumps and the driveline flexes.
It is easily fixed -- disconnect the driveshaft at the rear end and pull it out of the transfer case, remove three bolts and pull the tailshaft off, inspect snap ring. The snap ring can be replaced with a less brittle one from a 727 Torqueflite transmission.
This may or may not have anything to do with your problem, but is quite common.
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Today's Featured Article - New Hitches For Your Old Tractor - by Chris Pratt. For this article, we are going to make the irrational and unlikely assumption that you purchased an older tractor that is in tip top shape and needs no immediate repairs other than an oil change and a good bath. To the newcomer planning to restore the machine, this means you have everything you need for the moment (something to sit in the shop and just look at for awhile while you read the books). To the newcomer that wants to get out and use the machine for field work, you may have already hit a major roadblock. That is the dreaded "proprietary hitch". With the exception of the
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