Is the truck in 4wd,making a tight turn when you hear the pop? In 2 wheel,the shaft won't spin.
As far as the t-case,this was discussed a few days ago in Tool Talk.The oil pump in the transfer case is wearing holes in the case from the pump moving around.The case needs to come out and disassembled to repair the holes and install GM's fix which is to install small clips to secure the pump or a better fix which is to install a plate behind the pump.
I've repaired a handfull using the plate which I picked up from Kennedy Diesel.They also sell plate kits which has all the stuff you need to do the repair(plate,sealant,gasket,etc).Not a bad job at all,but for your first one,you should pick up a service manual as there are a few tricky procedures.
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