1997 Z71 transmission or transfer case failure
 

My truck is broke down and I don't have a lot of money to fix it, so I was wondering if anyone had any idea what might be wrong with it.

I had just pulled out on the highway and when the truck shifted into 2nd, I heard a very loud bang and a sound like I had dropped the driveshaft. I coasted into a parking lot and looked underneath. Everything looked okay, I decided to park it and call for someone to come get me. When I put it in reverse, it made a grinding noise and wouldn't go into reverse.

I got someone to pull it a mile to my house and it made the popping and dragging noise while it was in neutral. If I put it in reverse, it sounds exactly like trying to put a manual transmission in reverse without pressing the clutch.

I'm positive it's either the transmission (4l60e) or the transfer case, which is a push button one.

The symptoms: It will go in drive, but it makes a popping/scraping sound. I have no reverse, and it makes a loud gear grinding sound as long as it's in reverse.

Whatever it is, it isn't good :(. Anyone have any ideas on what might have broke?

Check your driveshaft!! The rear one. If it is good then drop ur tranny pan and look for metal shavings. Drain it into a clean yellow tub so you can see all the fluid.

More 4L60E woes! Sorry to say it sounds like a tranny issue. If you have to rebuild it there are a few upgrades that should be made. Let us know what you find.