The noise happens when I am decelerating down hill or on a flat or when I turn really hard one way or the other and only happens in AWD. It also happens in reverse as long as I hold in the over ride button, pretty sure is coming from the rear gear case. It is the non-deluxe modle so no ADC. It started off as a high pitch squeal but is now a low pitch groan/creak noise. It has less than 2000 miles on it, I'm starting to think I should have bought that new grizz 550 I was looking at..... any ideas? Could it be the Hilliard gone south? I just put brand new demand drive plus oil in the front case, pretty sure it started before that though.

Have you checked and or drained and re-filled the rear diff?

I changed the engine and transmission oil at the same time with the OE spec stuff, the tranny and rear case are one unit. All the oil that came out looked ok, there were some normal filings on the pug magnet. The noise is not like metal on metal grinding, it's more like a clutch slipping.

A friend of mine has a800 x2 and only one wheel works on the rear, like its always in turf mode, havent torn it down yet but its either the selenoid or there has to be some sort of clutch diisks in there, I havent had a chance to look at it yet, when I do we'll see what I find.

Looked up the parts diagram on babbitts, there is a shifting dog and shifting fork that controls the turf mode, I'll bet there is a problem with them looks like a bitch of a job,

Turf mode doesn't work on mine, both rear wheels pull even when the switch is set to turf mode, the solenoid is either stuck, burnt or I have a wiring problem. I'm not too worried about that, I'll just run it the way it is. I'm more worried about the noise, don't want to have to replace the entire front drive unit. I might drain the front again and take a look at the oil that comes out.

Thought you said it was coming from the rear?

No, pretty sure it's in the front.