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Some random thoughts on the transfer case gear:
BMW now has a gear repair kit as a stock item. Its somewhere less than $200, and has the great advantage of coming with a new cover plate (and C-clip). When you do the repair, drill a hole in the old cover and pry it off (rather than mucking up the crimped edge; you can clean that up nicely with a file after popping off the cover.)
If you are on the cheap, you can always rotate the old gear around 180 deg and get a 2nd life out of it. Of course you have to save the cover and not drill any holes in it.
Remember you'll need a diagnostic hookup after changing the oil to reset the life-counter, and to have it re-learn the clutch engage/disengage points.
Do not fall for the aluminum replacement gear on ebay. That was destroyed in short order and jammed the worm gear, with the clutch fully engaged I should say (that makes an experience out of turning into a parking place). Anyway, no aluminum replacement gears!!!
Pay heed to the warning about tires with different wear or DIFFERENT PRESSURES! These will cause constant actuation of the transfer case because it thinks the (different diameter) tires are slipping. (same issue as tires with different wear). (this caused the death of the aluminum gear, but I am sure a plastic one would have lasted longer against the hardened worm gear of the actuator motor)
-Hugh
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