Finally took the car to the dealer. Had to wait until we went on vacation, since otherwise the car is used nonstop for kid transport etc etc. I gave as much info to the service dept as I could. Told them the clicking sound only happens in 4wd auto or 4wd lock under light to medium acceleration. I told him I suspected the driveshaft carrier bearing but couldn't isolate the problem to that.

Got an email on vacation that they found the entire driveshaft assembly bad and it was causing all the problems. Upon picking up the car and driving it for several weeks now, I can say they fixed the problem 100%. I'm thinking the carrier bearing was going bad and was the cause. Apparently, it's not worth or it's not possible to just change the carrier bearing? Anyway, I'm happy the problem is finally fixed after driving it around for far too long with that issue. Hope this helps other Outie owners. Not sure if the later years have the same problem?

 

You're talking about the center driveshaft right? The one that goes to the rear diff?

Also, do you know how the transfer case works?? Are all the gears fixed and it's always spinning the center propellor shaft. Then the rear diff has the clutch to engage the rear axles. Or is there also a clutch in the transfer case as well?