Transfer case of 2003 Ford Explorer

When engaging the transfer case on my 2003 explorer (26,000 mi.) 4X4 high mode, upon acceleration I get a loud clunk coming from the right front. Local Ford dealer says the side of the transfer case is loose and pinions need to be replaced. Cost- $1000. This vehicle has a certified extended warr. on the drive train but the dealer says the transfer case is not part of the drive train. Sounds like a lot of B.S. to me. I would appreciate if someone else has had this problem what was the solution? Who is the best to talk to at Ford’s upper management?

Above problem states clunk is on the right side. It should be stated that it’s on the left side.

The transfer case is a major component of a 4x4 drivetrain.

Get another opinion before doing anything.

I just re-read the section in my Haynes repair manual (on my '02 Chev Tahoe 4x4) about the transfer case and there is no mention of pinions on the SIDE of the case.

Bolts hold the case in place.

I suspect the ‘clunk’ may be from a worn U-joint or a CV-joint. (Between the transfer case and the front axle)

Check the U-joints on the rear driveshaft as well.

Look around for a 4x4 shop that will give you a test drive/inspection free. FREE? You say! Yep, some do this as a courtesy to perhaps get your business.

Bump. Clarry, did you get this fixed?