Wrangler differential play

I have a 2000 Wrangler with a 4" RC lift and 1.5" lowering kit, 33X12.50 mudders.
When I start out there seems to be play in the rear diff or transfer case. Starts to spin then catches. Not much but enough to give me the creeps. Pulled the shaft and u joints are OK. Pulled the rear diff cover, no chips or fines but there is some play when turning the shaft by hand before it fully engages the gears. Is some play normal here?
The tcase has some play when in gear too when rotating by hand. Put it in neutral and all seems fine.
Can anybody give me some ideas here. I'm not sure where to head from here and my manual doesn't address this "end play" rotational issue.
Thanks 900 billion...not just a million
Pete  

Is this a manual or auto trans? You say is spins and catches.If it's an auto trans it could be slipping and when pressure builds jumps into gear.Could be as easy and tranny service or add fluid or as bad as rebuild. Hope this helps. Good luck  

Hi and thanks for responding.
This is a 5 speed manual transmission. When I let out the clutch it hesitates a bit and then I hear what sounds like the gears finally engage. All other gears are smooth as silk.

I have the drive shaft out and when in gear the main rear shaft on the xfer case rotates a small ammount but not much. When in neutral it free wheels and doesn't seem abnormal.

But the rear diff has more play in it but the gears in the diff look clean. I just don't know how much play is acceptable in the diff or tcase shaft.
???  

These all have some sloop in it. The deeper the rear axle ratio the more "slop/play" it can have. 5 to 10 degrees of shaft rotation "play" is not unusual. My guess the reason it feels sluggish or hesitating is because you upsized tires but not axle ratios to match it so it take longer for clutch to build enough torque tranfer thru friction to start to drive it. As you easy clutch out it does not take much torque to take up sloop so you here a clunk sometimes but it takes longer for enough torque to build to over come taller effective ratio. Many fail to fully exploit their 4x4's with proper axle gears for tire sizes in use and loose a lot of potential and with a manual this can also be pretty hard on clutch too.  

Thanks for the input. Can you tell me what the reccomended ratio for the rear end differential would be. Is it best to purchace a new diff already set up or have someone who's an expert replace the gearing. I understand that setting up a diff is a tricky operation.
Thanks again...your help is apreciated!  

Everyone has a opinion on what the perfect gear ratio is. Some seem to think that one ratio (a 4.10) is good for anything but it does not work that way. You factor in vehicle type, engine, use and tranny type. Tranny type is important because if it is OD such as yours it requires different gearing than non OD setups for best overall performance. You should have a NV3550 because around 2000 Jeep changed from a AX15 to a NV3550 (BTW, a 3550 is nothing more than a NV3500 in a case that is a bolt in replacement for AX15) I would suggest a 4.56 ratio here as it should play well off road and still be pretty tame on street. (in OD at 65 MPH you will cruise at about 2200 RPM and OD/5th should be fairly well usable) On gear swap, you just need to swap gear out in diffs and not replace complete axles. It is not a hard task but it does require a few tools and patience to set preloads and contact pattern correctly. Best way for you to go here would be to order/buy gears on line and then shop around for some installation quotes. Gear should cost less than 300 for both axles together and figure on a 500 to 700 dollar labor cost to get them installed (this is a ball park figure and can vary with where you are) On more tip, as long as you stay with 33's you are fairly safe with axle strength for tire size but I would not go any bigger in tire size with current axles.  

Thanks for taking the time to share your expertise. I'll put it to good use! I found the following yesterday while crusing through my manual. Hopefully it will help someone else who might be in the same boat.
Thanks again...

DRIVELINE SNAP
A snap or clunk noise when the vehicle is shifted
into gear (or the clutch engaged), can be caused by:
² High engine idle speed.
² Transmission shift operation.
² Loose engine/transmission/transfer case mounts.
² Worn U–joints.
² Loose spring mounts.
² Loose pinion gear nut and yoke.
² Excessive ring gear backlash.
² Excessive side gear to case clearance.
The source of a snap or a clunk noise can be determined
with the assistance of a helper. Raise the vehicle
on a hoist with the wheels free to rotate. Instruct
the helper to shift the transmission into gear. Listen
for the noise, a mechanics stethoscope is helpful in
isolating the source of a noise.  

Ujoints is a very good source of noise as they can get a little loose and drive shaft will amplify the noise they make. On backlash, while it can cause noise if excessive, the mesh/pattern it is running one is more important. If it is running quiet (ie no gear noise at speed) I would not be concerned even if it is excessive as changing backlash could change mesh pattern and make axle gears noisy sometimes so it is is best left as is most of the time.  

While holding the ring gear and rocking the pinion gear back and forth by hand I can see that there is very little play between the pinion and ring gear. There is much more play in the pinion gear mate shaft that the spider gears ride on. I have seen this on other Jeeps but have never replaced the shaft and spider gears. This looks like an easy R&R...any thoughts on this.
Thanks!  

Found it...

The differential case holding the pinion mate shaft is worn. The shaft is the one holding the spider gears in the rear diff. The gears flex enough to cause a popping sound when taking off. Some guys tack weld the shaft ends to stop the noise but it's not enough of a problem for me to do that. I'm going to button it back up and look for a good deal on a diff somewhere. If none can be found I'll have to R&R the case.  

I have a 2003 wrangler sport, 5 spd. manual w/ 31x10.5x15" tires. No lift and 3.07 gear ratio. I got into a head-on collision which ripped the front axle suspension arm welds off completely. I had upgraded the stock axle shafts to the heavy-duty 27 spline yukons. Upon getting my jeep back from the body shop, (replaced front axle housing w/ new stock housing), the gears were grinding badly as I drove away. Returned the jeep to get gears replaced, upon driving back from picking up jeep, front axle locked up @ 55 mph on the hwy. I found out they put a 4.56 ratio in the front, needless to say it did not go well with the 3.07 in the rear upon ingaging 4-wheel drive. The body shop replaced the gearing again to a 3.07 ratio. Now I am looking at very used, worn stock axle shafts constantly causing the left seal to leak. I want my yukons back because these stock axles don't carry my tires well. I have all the info. off the origanal axle housing (done this when purchased jeep for future refference) but the body shop tells me these numbers mean nothing. I'm getting screwed here and want the insurance co. to stand up to their promise of putting my jeep back to the way it was or better. Does anyone know what these #'s mean? When I asked for my old parts, I was told the junk man took them away. Dana 10869 1  017 3 (rev s) 11/8/95. Dana 43225  008 3  rev K  2/27/97. I bought this jeep used w/17,000 miles, had 55,000 @ time of accident. When i return the jeep because of seal leaking they tell me there is nothing wrong. I pulled the axle shaft and any idiot can see it's badly worn in bearing/seal area. I'm a girl and feel as though I am being treated like an idiot here. Can someone possibly help me with these #'s? Sorry for the long story. This has been going on since Nov.I know i could just replace the shafts and call it good, but it's under warrenty and a promise is a promise. Sorry Arkie, this should have been a new post. Silly me.  

i worked with insurance companys awhile back and i can tell you that all they can assist you with $ or basically pay out what the damages are to what is a stock vehicle. Now let me ask you this, did you inform them of the previous upgrades prior to the orginal accident.  If not then you dont really have a leg to stand on.  If you did report than harase them and the body shop til they give in  
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How about getting together somewhere sometime and messing around?    Spawn_X

This is a HUGH thank you to 1986blazer/Spawn_X. Forgive me for taking so long to say thanks. Life get's busy and we tend to try and pack to much in to too little time. You got back right away and I am extremely grateful. I guess I just bite the bullet and replace the axle shafts again. This time tell the insurance co. Also demand my old parts. Live and learn. Thanks again.