To start...I have Selec Trac with the full time/awd option...so when I say I put it into 4WD that's what I mean!

Over the past month, I've noticed that when I'm in 4WD (shifted just fine) that I hear a rubbing noise...like rubbing your hand over the top circumference of a glass. Speed doesn't change it. Same amount of noise at 20MPH and at 60MPH.
Just recently, when I've gone to put it in 4WD, it seems that it hangs up, like during the shifting process it ticks and clunks (and takes a long time to shift....like maybe 1/3-1/2 mile?, not quick like it did) and the same thing happens when going back to 2WD. The ticking noise isn't consistent though, sometimes it does, sometimes it doesn't. It seems like it's coming from right under the driver.
I crawled under it this morning and nothing really looked strange. I checked the driveshaft.
The front end of it (towards the diff) had some back stuff around where it bolts, not greasy feeling really. Noticed in some old pics I had taken of the front drivetrain back in 2009 (for someone considering a 4WD conversion) it had the same black stuff there. And the 4WD worked great then and has until now. On the transfer case side, the boot (or is it missing?) wasn't torn, I didn't see grease splattered anywhere. Here are some pics:




Notice how the shaft isn't centered...is that normal or indicative of a bad joint? And could that missalignment be the reason that the shifting is messed up? And the strange noises? If this looks normal, is the issue deeper routed like in the tcase or front diff?
Thanks much, I really appreciate any help on this!