Ok, update. Called a local 4wd drive place along with Marc to get idears of what it could be. The 4wd shop said to pull out the lockouts completely and drive it and see what happens. No difference. Called Marc, he said to try and lock the lock-outs and keep the T-case in 2wd. I did that and NO NOISE at all.
So
NOISE
HUBS T-Case
Free 2wd
Removed 2wd
NO NOISE
HUBS T-case
Locked 2wd
Free 4wd
Removed 4wd
In summary. it the front end is free spinning, I get the noise.
If it is spinning, either hubs locked OR T-Case in 4wd I get no noise.
I am at a loss for the noise.
I haven't check the springs yet like Marc Suggested. We'll see what happens next.