I replaced transfer case a 2nd time in August 2005 because it locked up again. This time the recall work had been done at a dealership (see Koller Dodge of Naperville IL Review), so we figured the cause might have been something other than the brass plug…
One thing stuck out in our minds, the well known 1g ”driveshaft thump” issue. As the car accellerates quickly, the driveshaft actually flops around and hits the floorpan of the car because the carrier bearings are old and flex too much after they wear.
Once we fixed that, we got another transfer case and it's been okay ever since!