I'd say this is 90% the shops fault, you should check the fluid just to be sure but in the end the shop clearly made a mistake.

 

sorry to hear this..this is why i watch people like a hawk if i have to get my car worked on...because lets be honest if your not on here talking with these folk that love and KNOW evos you wouldnt know not to trust that fill hole...this reminds me its about time to change mine again..

 

your t-case was short of fluid buddy!its a very common thing with shops that dont know what they are doing on Evos.I have witnessed this at least 4 more times.When you fill the case from the hole it shows full very quickly and they think that its ready but as you read at Jack's instructions things are different!!

 

the shop is agreeing to fix the car on their own dime, but they want to "find" a comparable transfercase, i dont like the idea of possibly getting someone elses junk, but i dont want to stretch this out any further than it already has gone..

anyways, here's more pics once i removed the pinion






im no expert, but i dont believe the bearing just gave out.. the guy at Aamco has given me advice that makes the most sense, low or no oil hence the color and smell... and the bearing welded to the case from the heat

 

bearings dont just spontaneously combust like that... its almost always poor lubrication

 

Thanks to you now some of the noobs like me are aware of how the t case can fool us with the fluid levels making it look full. Sorry to hear what happend to you. I'd say its the shops fault and the fluid was probably low

 

well things get worse, hopefully the mods will approve my next post to deal with this shop. my clutch is done now too, before disassembly they are claiming it to be a manufacturer error on Competition Clutch's end. SMH... def last time I allow them to fix the problems they caused.

 

the shop supposed to be responsible they forgot to fill the transfer case.