I have an 1984 Chevy K30 Scottsdale which runs and works great in 2WD and in 4Low with the hubs locked in.  When I put the NP205 transfer case in 4 High then the front end locks up.  I have the 454 Cid with the 4 speed manual transmission.  Is my transfer case bad or is it something in the front differential?  I have changed out the shift grommet from the transfer case shifter lever to the transfer case.  I can feel it shift from 4 Low to N to 2 high to 4 high.  When hubs are not locked in it there is no problem in 2 wheel drive.