When my 07 Escape is in motion it has a grinding noise that increases with speed. I jacked the car up on all 4's and put it in gear, the driveshaft at idle has a wobble to it and can hear that grinding noise. I'm thinking transfer case, but can't figure out why the shaft is wobbling. Any ideas and any tricks or tips on me pulling the transfer case and replacing it?

 

You didn't say which driveshaft, but did anybody check for worn U-Joints?

 

The driveshaft from the transfer case to the rear differential., if it's 2 piece then it would be the one from directly behind the transfer case. It wobbles from the very front of the shaft where it attaches to the case.

 

It should run true, . You can confirm if the grinding is coming from the transfer case by removing the rear driveshaft and while driving in 4WD using the front differential. If the noise is gone or you see something definitely wrong with the u joint you removed you now should have some idea what to do next.