Ok, so it cost a good bit less than he said, which was good. Said that the guy tore the transfer case apart, and the only thing he found that needed replacing was a "needle bearing". Does that sound right?
I think even Kenny (he's the senior mechanic, and may be the owner) isn't 100% sure, since they did take the truck out and into 4hi (it's raining) for "about a mile" to listen for the noise - and told me that I should listen for it too when it's next in 4hi.
Got some cautions about not driving in 4wd on dry roads, which I know...
Anyway, I see what a needle bearing looks like (a ring), would a bad needle bearing and nothing else cause the noise (like driving over a gravel road) I was hearing in 4hi?
Anyway The Truck feels and sounds fine now. I just need one last decent snowstorm to test the 4wd... finding dirt roads to test, here in the 'burbs, isn't easy.
But YAY the car's gone and I'm driving The Truck again. Happy Camper :)
jmc