American Motors: Jeep t-5 transmission, case problem, loud pop

Question
My jeep cj7 made a loud pop as I started out in first gear and then began to click loudly. The clicking noise reduced as I shifted through the gears to 4th but was still pretty loud.It still seemed to pull ok and the gears shifted as usual. It don't make noise with the clutch in or idleing in neutral. My jeep is a 79 with v8 and I don't think this is original trans. as it is a 5 spd. Does this sound like a trans or transfer case problem? Whats the best way to diagnose?   Thanks

Answer
Try removing the rear driveshaft; place it in 4H; and drive it off the front wheels.
If the noise is still present, then chances are you have a problem in the transfer case.
You also might try placing the transfer case in 4L and see if the noise is present. I do not know what transmission/transfer case you CJ has in it, so good luck.