I have a 95 with 5.8 liter auto trans. I have a noise coming out of the tail shaft of my transfer case can someone tell me if there is a bearing in there that can go bad and I know its in the tail shaft cause I took out my driveline and the noise went away.

 

If some water/dirt/grit got past the seal, then yes, there is at least one bearing that will go away on you.

If you know the brand and model of the Tcase you can search for an exploded view online.

 

There is a brass wear sleeve that has an oil groove in it that I have had to change before, doesn't cost too much and not to difficult to replace once the tail shaft is off.