2006 X3 Transfer Case
As requested please find some photos of my dis-assembled X3 transfer case. You can see in the aluminum housing where the stretched chain wore into. The two bearings for the output shaft for the front drive axle are shot also, no play in them just noise. The fluid did not have a burnt smell either. Everything else within the assembly seems fine, even the clutch packs. Seems BMW has a weak link in their drive train.