Ok so I did a quick check, with the shaft cover slid back, and the system in 2 wheel drive mode, turning either front wheel while the other is held stationary does NOT turn the shaft (from transmission). I was unable to take the plug out to verify if the shaft is turning internally in the front axle on either side. So something is not connected right in the front axle. Oh and I did put it in 4 wheel drive with the front wheels off the ground and the back wheels locked and the shaft to the front end does turn when I try to go forward or reverse.
Thanks all, looks like a front end tear down is in order.
Rancho