While you've got it off i would put in the genuine drive chain and check/clean everything...think i paid about £160 inc vat and packaging.
 
gemsdad - thanks for yuo advice and I have sent a message to that guy on ebay


I went to pick up 3 boxs now and they all were different to mine - by gearbox shaft has bigger/fewr splines, look at the pic above:



and here is transfer box in bits (if you always wondered what is inside there ... ):



Last 4 picture shows the part where it looks like the wierd noise is coming from. Everything inside the box looks fine though - no damage! Could it be the coupling??
 
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I need to understand what's broke in my transfer box! could the problem be in coupling bit?

ps it is not easy to find manual range rover ...:(
 

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