Did towing damage my transfer case?

[djmac]

Had to have my Jeep towed home last week. (88 efi 460 with C-6 and manual Borg Warner tranfer case) It was towed from the front with the front wheels (http://www.ford-trucks.com/advertiser/kwldirect.php?kwid=548)off the ground backwheels on the ground with the tranfer case in neutral. When I tried to put it back in 2 wheel it felt like it was jambed I was able to get it into 4 wheel low easily but 2 wheel would grind if given enough pressure on the shifter. Eventually I was able find 2 wheel with a lot of messing around. Could the towing (http://www.ford-trucks.com/advertiser/kwldirect.php?kwid=461)have done this or is it just a coincidence?

[JeepinPete]

Some transfer cases will not oil properly during a tow. I know nothing about your case, but if it is one of them, then its possible it fried a bearing or two.