My Titan is at the shop now. Diagnosis says that my front drive shaft "binded up" thus taking the seal/bearings of the transfer case with it. New transfer case needed, new drive shaft, and two new front hubs. I'm the second owner of the truck, bought it last November with 55K. Bought a third party extended 4 year/100,000 mile warranty too, but I'm worried because the contract says transfer is covered if failure is due to "internally lubricated parts failure". Any suggestions?

I'm trying to get the Nissan tech to play ball with me and convince the warranty company that the transfer case failed on its own. Each part is covered under my warranty, it's just a matter of "how" it failed. I'll find out today what they will cover and what they won't.....
oh, and I'll be submitting the problem to the ntsb or whatever it is.