Np208 problem? (video included)

[Dvldogyut]

So what I think I have narrowed down to a t-case problem is a grinding noise when I accelerate. I didn't think to check it in 4wd before I pulled it out. But there was alot of very fine metal in the fluid when I drained it. So I pulled it out and took it apart and this is what I found. Is it normal? Or is this my problem? This is the first time I have ever been inside of a t-case.

 

[Dvldogyut]

http://www.youtube.com/watch?v=0D7nPPZ357A&feature=youtube_gdata_player

 

[xsmokey11499x]

to be it sounds like the bearing in that thing..

also nice phantom grille looks just like my truck, minus push bar

 

[Dvldogyut]

to be it sounds like the bearing in that thing..

also nice phantom grille looks just like my truck, minus push bar

That's kinda what I'm thinking too. Just wanted some experience opinions.

 

[Dvldogyut]

The annulus bushing and thrust washers are shot. Found them online, $20 fix for all three.