Did you trim the required 1/2" off the driver's side shift rail of your transfer case?
Here is a picture of Marlin himself doing this, quoted from Loki's build thread,
![](http://i117.photobucket.com/albums/o71/munisj/MISC/DSC01002.jpg)
Cover the counter shavt and coupler bearings with a shop rag (Marlin tucked it behind the snap-rings) to prevent metal shavings from going into the bearings/case and with a high powered cutoff whell, get to crackin. Make sure you shift it into hi. it should be about 1/2" to cut off.
Key point to note is to shift the t/case into high range, either 4WD-High or 2WD-High, to expose more of the shift rail for an easy cutting process.
Let us know if you did this or not, thanks!
BigMike