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The main problem that you will encounter is the mounting of the engine. You might end up having to customize the mounting brackets and reorder some components of the engine compartment in order for the replacement engine to mount correctly. You would have to balance the engine as well and pair up it's output with the capacity of the differentials. I think you can use the present gearbox but results are not guaranteed and it's not an easy fix.
Do you know which gearbox it is? some are GM and some BMW I know that sounds crazy but this model has 2 types of gearbox neither made by Izusi. Look here at this diagram tell me if that is the correct box http://www.unofficialbmw.com/images/BMW_Automatic_4L30E.pdf
get back to me if not and I will be able to locate for you.
there is really no need to change the transfer case oil other than not having anything else to do and it is very hard to get it out.. putting it in on the other hand .. you will have a recessed bolt in the top on the transfer case it looks like a 1/2 inch drive extension will go in.. back that out and put your finger down in the hole if you can't touch fluid it is low. go to local auto parts and ask for 90 weight transfer case oil.. if you tell them what type vehicle they will give you the right oil. probably need spout to get it in the hole.. secure nut back on and your done.. good luck ray
Just have your auto - locking hub cleaned and use your 4wd more often, it get stock usually for non usage. dont use grease after cleaning, use oil or thick silicone oil.
I just kept finding out information and have just about confirmed it would have to be a faulty inhibitor switch, but finding a cheap one is another matter
complete drain of trans or just drop the pan and replace the fluid filter.
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