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Correction Important: For ease of reassembly, shift the transfer case assembly to 2HI for the NV263 (NP1), or Neutral for the NV246 (NP8) prior to removing any components. For information on placing the NV246 (NP8) transfer case in NEUTRAL, see the procedure at the end of this bulletin. 1. Remove the transfer case and front axle/engine skid plates (if equipped). 2. Disconnect and position the front propeller shaft aside. 3. Disconnect the transfer case encoder motor wiring harness. 4. Remove the three (3) bolts that retain the encoder motor to the transfer case. 5. Separate the encoder motor assembly from the transfer case and place it on a work bench. Important: DO NOT REMOVE THE SCREWS INDICATED WITH THE (1) IN THE ABOVE ILLUSTRATION. 6. Remove the four screws on the outer perimeter of the encoder motor housing. Important: For proper timing and ease of reassembly, hold the gear in place as your remove the cover from the encoder motor assembly with your thumb or finger. 7. Carefully remove the cover from the encoder motor assembly. The cover has a seal on the bottom side. Place the cover in a position to protect this seal from damage and/or contamination. Important: Observe the location of the punch mark on the large gear in relation to the timing mark on the housing if the transfer case was placed in the 2HI for the NV263 (NP1), or Neutral for the NV246 (NP8). The timing marks should be within one tooth of proper alignment. If not, you must note the timing mark positions for reassembly. 8. Locate the two shims; one on the small gear and another on the larger gear. Set them aside on a clean surface for reuse. Important: After removing the large gear from the housing, a dark gray phenolic spacer should remain in the casting where the bottom of the large gear resides. Locate this spacer and save for reuse. 9. Carefully lift the large gear from the housing. The sensor and wiring harness will come with the gear. 10. Disconnect the wiring from the sensor. 11. Separate the sensor from the large gear.
