Yes you do have to remove the driveshaft. The slip yoke is the part on the drivesfaft that slides into the rear of the transfer case. This issue is ver common with all GM 4 x 4's. A buddy of mine has an 04 and his does the same exact thing. My Silverado did it too and they installed an updated slip yoke. No such fix for the H2. Dealer said it was normal. About the only thing that was normal was my royal dealer screwing.
03 Sunset H2!
89 Vette
02 Escalade
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