Transfer case rebuild question

[axel]

I'm rebuilding the transfer case on my '04 1500 Sierra and am in the process of shimming the clutch plates for proper preload. My question is should the plates be assembled and measured dry, or should I soak them in oil first and then take measurement to determine shim thickness? The factory manual does not specify. I'm wondering if the fiber plates may swell if pre-oiled and affect their thickness. I'm more familiar with wet clutches in motorcycles, which are always assembled after a good oil soaking.

[axel]

I'll answer my own question in case anyone else rebuilds their own transfer case. According to local dealer, all clutch plates should be pre-oiled and will have no affect on measurements taken for preload shimming.

[efritz]

shimming is best done with the plates oiled if they are fiber based, but it doesn't really matter at the end of the day. I have rebuilt many of those so if you have any other issues just post.....

[axel]

Thanks, I do have another question. After rebuilding it's having trouble going into 4H. Lights will blink and then switch back to 2H. It will go into 4L and Auto. I rechecked the clutch pack stack up dimension using the Ken Moore J-44295 and it's spot on. Thinking the Encoder Motor may be weak with age, so I have one on order. Any other thoughts on why it won't stay in 4H?