Chevy 4x4 problem goes into but wont work sounds like gears are broke?

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chevyracing16

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I have a 1996 chevy 4x4 half ton short box the four wheel drive will not work. The light gauges come on for 2hi 4hi and 4lo but when i try the 4x4 it does not work and you can hear something grinding. If anyone has any clue what the problem is please let me know greatly apreciated.
 
There are two thing engaged when put into 4wd in that truck. One is the transfer case, the other is a small splined collar in the front diff. If your grinding is coming from the center of the truck underneath you your Transfer case has some problems, such as a bad sprocket or blown planetary gear set. If the grinding is coming from the front of the truck your problem might be a broken/stripped engagement collar, or a bad engagement solenoid that is not allowing full engagement. Other possible causes could be broken gears inside the front diff, or stripped front drive-shaft splines.
 
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