I am finally almost finished just waiting on a new tail cone bushing through the mail. The transfer case has been rebuilt. Having never rebuilt a 1356 before, I was a little intimidated, but it is actually a pretty easy job, just takes time. One tip i can offer that wasn't really on any of the other searchable sources is about the tail cone bushing. I found that a 36 mm axle socket(mine is an ampro brand) is the absolute perfect diameter for pressing out that really thin bushing (3 mm). It came right out with a press, and no need for the expensive bushing tool from Snap-On alot of snots insist is needed for the job. Just have to mess with it to get it lined up perfect, the once its starts down the bore, it will use the bore for a guide.
If you are thinking about rebuiding yours, the only tools required other than a ratchet and screwdriver for prying are a T-45 bit, snap ring pliers, bearing puller that pulls from the inside(pinion puller will probably work), and a shop press. The longest part of the job for me was fighting with the retaining clip on the input bearing. Its recessed in the housing making it very difficult to wedge out even with a good set of snap ring pliers.
I also rebuilt the oil pump, and caught mine right before it was about to blow past the keeper casting in the case (common i read with the 1356). I welded a small bolt onto the new arm and ground it down until its just barely cleared the casing providing 2 times the amount of surface contact with the casing. I highly recommend this modification after seeing the design.
Other than that, pretty easy job, just takes time getting it clean, and keeping it all grit free while re-assmbling. I would consider it a DYI job for a weekend mechanic.