I guess I'd start with the "feel" of the 4wd lever. Does it feel as if it is moving parts inside normally?
Lift the front end off the ground & spin one of the tires, do you hear any noise coming from the center (differential). Oil leakage?
I lost the front differential on a 336D years ago, it was run dry but I never saw a drop of oil anywhere on the front axle or where it was normally parked.