2007 Transmission clunk, squeak, grinding, 2H and 4A fails, 4L and 4H Drives

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Excille

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Hello, this is my first post, but I've been scouring for information all day, and need some advice.
Short Version: my truck now only drives in 4L or 4H, and apparently only as a front wheel drive, as trying to back up onto ramps showed me only the front engaged. Should I be fine to drive it 30 miles to a shop? What am I likely looking at for my problem?

My saga: Secondhand 2007 Expedition, with about 248k miles (Now over 262k) over a year ago, I started noticing a clunk after reversing and then driving again, particularly when I started driving with the wheels turned hard one way (like out of my driveway). Additionally I noticed a shudder when accelerating to hwy speeds, feeling like there was some imbalance in the vehicle. I took it into the dealer with a transmission concern, who duplicated the clunking, and the diagnosis was "Found noise coming from both CV axles. Found car was stuck in 4WD and would not disengage to 2WD. Was able to switch back and forth from 4WD 2WD and was able to unlock front axle." They tested it again, 'normal operations'. Additionally they found excessive play in the upper control arms and both ball joints and I had them replaced, with all that goes into that. (only $2500 for the whole job). Driving away, still had the clunk, still noticed the vibration, came back when I could for a re-attack, but noticed that it happened more in 2H than in 4A.
This time the tech noticed a 1.5" difference in circumference for one tire - I had been trying to do a 5 wheel rotation, and my spare tire was slightly differently sized "causing transfer case to engage and disengage when accelerating after backing up and driving forward".
It did not solve my problem, but I found that if I drove gently, I could avoid the clunking. I had a friend notice squeaking when I was driving, and he suggested the CV joint might be having problems.
Additional notes, ABS light has been on for ages (although sometimes it randomly stays off). When parked on a slight incline, without the parking brake, it would roll slightly forward or backward (maybe 4 inches) until (I think) the gears engage. When driving down a steeper hill with cruise control engaged, there would be a surging in the engine - turning off cruise control and coasting or using the accelerator kept this surging from happening.
Lately, it had been feeling worse, and I'd reduced the amount of driving overall, and started driving in 4A mostly. I got the sense that there was an imbalance in the shaft or something, and I asked my uncle who used to work on vehicles about the CV joint. He heard the clunking from the rear of the vehicle. I'd decided it needed to go in again, but hadn't scheduled the appointment yet, and today I drove up our dirt road (3 miles) and as I accelerated from the stop, turning onto the highway, I heard a clunk and suddenly lost power to the wheels like it had slipped out of gear. Placing the truck in park, I took my foot off of the brake and it started to roll slightly, so I put on the parking brake. I managed to pull over to the side, and looked underneath to see if the driveshaft had fallen out or something ridiculous, but didn't see anything dangling. With trial and error, I found that I could drive forward and reverse in 4L and 4H, but got no power in 2H and 4A. Acceleration in 2H saw the RPM climb (with no movement), but stepping on the brake didn't impact RPMs - they just reduced to idle as though I were coasting.
I was able to drive home in 4L, did more testing, it seems that only my front wheels engage. I shifted between 4L, 4H, 4A, and 2H. I noticed a rasping sound/vibration when in 4H that I didn't in 4L, I also hear a crunching when I go from drive back to park, regardless of the gear. While parked and still in 4L, the rear wheels spin freely (once I released the parking brake).

I'm considering the IWE, but from what I've read, I think the rear wheels should still be engaged? Would it be a bad idea to drive in 4H or 4L into town 30ish miles to get it diagnosed, or would I be better off getting a tow? I can do some work myself, including putting in new parts, but I don't have a lift, and don't want to put myself in a position where I need to get a trailer just to get the truck to a shop for work I'm not fully able to do.
 

Dustin Gebhardt

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My first thought would be to see if the driveshaft going to the rear differential spins when you are in 4L or 4H and moving forward. If the rear driveshaft spins then your transmission and transfer case are likely okay (but not for certain just yet). If the driveshaft does not spin, then the issue is your transfer case. These transfer cases have an electric motor that (dis)engages the front drive system but passes through the transmission power to the rear wheels. However, if you have a limited slip or locking differential then the driveshaft will spin when the rear wheels rotate, so the above test has some things you need to be aware of. Check the tag on your rear differential. The tag will list the gear ratio and if it is limited slip or not.

The rear differential has a triangular brace that supports the lateral forces on the diff. These are known to go bad or loosen, causing a clunking when starting or stopping. FordTechMakuloco has a video on this issue. I don't recall the fix, but I think it is fairly simple like new bushings. If the brace is loose enough, I could imagine that this may allow the driveshaft to pull out of the transfer case (transmission), and cause a loss of power to the rear wheels.

Note that your uncle is likely on the right path, as these IRS (independent rear suspension) systems have CV axles at all 4 corners. But since the rear axles don't see any turning like the front axles do, they are a lot less likely to go bad.

Note that these vehicles with computer controlled traction systems absolutely hate differently sized tires, which may be the cause of your ABS light. Even the same "size" tires from different brands or different tread patterns can cause ABS and traction control issues. I've personally seen an issue with the a brand new tire causing issues with 3 worn tires of the exact same type and brand (I had a blowout and only purchased one new tire).
 
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