Not much you can really tell from that. The slight metal grind could simply be the brakes. On a car this old there's bound to be some play in the driveline. Only real way to check the transfer case is a jack test. Search youtube for "325ix jack test" for details.
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1986 Delphin 528e - Roof rack equipped lumber hauler.
1989 Zinnoberrot 325iX Sedan - I miss this car. (Deceased)
1998 Avus Blau 328iC - Someone else's project now
2008 Platinum-Beige X3 3.0si - Current project
2012 Alpine White X3 xDrive35i - My new snowmobile.
2020 Estoril Blue 440i xDrive cabrio - This car is a blast to drive.
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