Outer Limits 4x4 Board

Hey guise here's the problem, went for a 4wdrive trek in thick sand and was pushing the little Vitara a bit hard to the point the exhaust was glowing red and my 4wdrive started making a clunking sound. This was found to be it disengaging then re engaging. Could get around this by holding onto the 4wdrive stick. But it finally let go a few weeks back and know is totally jam'd. So is now permanently 2wdrive. Wondering if any one has had this happen and is it repairable or just in need a new transfer case?

get some reductions gears and get them installed, anything else broken or jammed will be fixed while they install them... also new bearings will be put in as well...