So, I went out this morning for some more investigating. As above with transfer in neutral, the drive shaft from transmission turns. Now, I put the transfer in gear and the rear drive shaft turns--even though the transmission is in neutral. I can stop the rear tire with some pressure from the side. I should mention that I have the rear end jacked up. I ran through the gears and the noise does quit in fourth. So, it sounds like bearings are the problem, YES? I am not the world's (or even my small town's) best mechanic, so doing a bearing job may be beyond my expertise. However, I can sure pull the trans (I had to do it twice to get a clutch in). Maybe I should just look for another transmission? Any good sources for a good used transmission? I certainly cannot afford a new one. I am open to any and all ideas. Thanks in advance for the help!!