How do I remove front drive side differential?

You have AWD? full time all-wheel drive.
Transfer Case Description and Operation
The Borg Warner (BW) model 4481, RPO NR3 transfer case is a one-speed, full time, all wheel drive (AWD), transfer case. The transfer case provides power to both axles, through an external planetary type differential, which has two different sets of pinion gears. The planetary differential provides a 40/60 torque split, front/rear, full time. This means both axles are constantly being driven for maximum traction in all conditions.
The transfer case external type planetary differential functions the same as a typical rear axle differential. The transfer case differential pinion gears function as the spider gears, and the sun gears function as the side gears.
The following actions occur because of the planetary differential:
• If the vehicle is on a hoist, the front propeller shaft can be rotated by hand.
• The vehicle cannot be driven if one propeller shaft is removed.
• Operating the vehicle on the hoist can damage the differential pinion gears, by over-spinning.
• Operating the vehicle with one propeller shaft removed causes over-spinning of the differential pinion gears.
The BW 4481 design of the planetary differential allows the use with the Vehicle Stability Enhancement System (VSES) vehicles. The VSES takes use of the planetary differential, by applying braking to a tire that has less traction and dividing the engine torque to the other axle.
The BW 4481 case halves are high-pressure, die-cast magnesium. Ball bearings support the input shaft, the front output shaft, and the rear output shaft. The transfer case requires DEXRON®III ATF GM P/N 12378470 (Canadian P/N 10952622), which is red in color.

This system does not have an encoder motor.

Depends on what sort of set up you have.

If there's a transfer case - it's like another gearbox on the transmission - it's the transfer case (I.e a gearbox..) that supplies power to your front wheels.

The transfer case is itself powered by the transmission. You will have a propshaft (driveshaft) running from the transfer case to the front differential.

IF you are in constant 4wd then you will not have a centre diff unless you have an AWD. The difference is that AWD transfer cases have a centre diff that allows different road speeds between the front and rear diffs as in going over speed bumps and dips ion the road It is the same operation in the front and rear diffs that allow one wheel to go faster than the other when cornering. However in 4wd drive there is no diff action in the transfer case and both front and rear axles drive at the same speed regardless of speed bumps and dips in the road . This action produces what is known as torque wind up which results in the handling characteristics. This torque wind up places stress on all the drive line train and results in failures such as .that you describe.. This wind up is not noticeable when driving on loose surfaces slippery surfaces or in mud as it is allowed to escape when the wheels spin . If you have an AWD with diff lock capabilities then check that the diff lock is operating correctly

Make sure that the vacuum hose connector is connected AND connected correctly at the transfer case and at the front differential. If that is all right and the front differential still doesn't engage, then you need to test the vacuum actuator at the front differential.

The Selectable Four Wheel Drive (S4WD) Front Axle consist of the following components:
• Differential Carrier Housing
• Differential Case Assembly
• Inner Axle Shaft
• Intermediate Shaft Bearing Assembly (located on the right side of the oil pan)
• Electric Motor Actuator
The front axle on Selectable Four Wheel Drive (S4WD) model vehicles uses a disconnect feature mounted on the right side of the oil pan in order to engage and disengage the front axle. When the driver engages the 4WD system, the Transfer Case Control Module sends a signal to the electric motor actuator to energize and extend the plunger inside. The extended plunger moves the clutch fork and clutch fork sleeve across from the clutch fork outer gear that is splined to the right side wheel drive shaft to the clutch fork inner gear that is splined to the inner axle shaft. The locking of the two gears allows the axle to operate in the same manner as a semi-floating rear axle. A propeller shaft connects the transfer case to the front axle. The differential carrier assembly uses a conventional ring and pinion gear set to transmit the driving force of the engine to the wheels. The open differential allows the wheels to turn at different rates of speed while the axle continues to transmit the driving force. This prevents tire scuffing when going around corners and premature wear on internal axle parts. The ring and pinion set and the differential are contained within the carrier. The axle identification number is located on top of the differential carrier assembly or on a label on the bottom of the right half of differential carrier assembly. The wheel drive shafts are completely flexible assemblies consisting of inner and outer constant velocity CV joints protected by thermoplastic boots and connected by a wheel drive shaft.

How To Install Repair Replace 4x4 Front Axle Actuator Chevy Trailblazer...

It sounds like the front differential is not disengaging. What you will need to do is determin if it is due to the front differential staying locked or the transfer case being engaged. To do this, all 4 wheels will need to be off the ground and the vehicle allowed to coast in gear to determine which it is.

If you look at the front drive shaft and roll the truck on the ground, if the transfer case or the front differential is locked, it will turn either way, so all the wheels will need to be off the ground. If you do not have the resources to do such a diagnosis, please do not jury rig a set up. This is a heavy truck, and you could be injured. A lift is really needed.

Once you know if it is the transfer case or the differential, this will make diagnosis much easier.

SOUNDS LIKE A BAD HUB TRY THIS TO DIAGNOSE THE PROBLEM

Put the transmission in park, set the parking brake and raise the chassis so one of the front wheels is off the ground while the other is still on the ground. When the transfer case is in two-wheel drive, the hubs should be released allowing the wheels to turn freely when spun by hand. If the axle shaft turns when you spin the wheel, it means the hub has not disengaged.
To check engagement, rotate the axle shaft backwards. This should lock the hub. Try turning the wheel by hand again. The axle shaft should now turn with the wheel if the hub is locked. If the hub fails to lock, the hub will have to be disassembled and inspected or replaced.
To check release, hold the axle shaft steady and rotate the wheel backwards. You should hear a click as the locking mechanism slides back out and disengages the hub. Rotate the wheel forward again and it should turn freely.
Another way to check the hubs is to raise the vehicle on a frame contact lift so all four wheels are off the ground. Then start the engine and place the transfer case in four-wheel drive and the transmission in drive. If the front wheels don't turn, look at the front axle shafts. If both shafts are turning, but one wheel is not, the problem is a bad hub on the wheel that isn't turning. If the front driveshafts are not turning when the transfer case is in four-wheel drive, the problem is inside the differential (broken side gears) or the transfer case (broken chain, shift linkage, etc.). If the driveshaft between the transfer case and differential is turning, the problem is in the differential. If the driveshaft is not turning, the vehicle is going to need repairs to the transfer case.
Hope this helps.

Remove transfer case shield. Remove clamp on boot
where front drive shaft meets transfer case. use a flat
screwdriver to pry free end up and release clamp. (you need a special clamp tool to reinstall clamp )
Remove 4 bolts at differential end that hold U joint Retainers to yoke. Slide drive shaft to rear enough to clear yoke. then let drive shaft drop so it clears differential and slide forward until it come off transfer case shaft.

Try removing the front drive shaft from the transfer case to the front differential. With the vehicle on 4 jack stands and the front drive shaft removed attempt to place the vehicle into 4 WD. You may have to start the engine if the vehicle uses a vacuum actuator module to engage the front wheels. When you get an indication that the vehicle is in 4WD try turning the front wheels by hand and see it you hear the same grinding noise .... engage the hubs and try again. Usually if the transfer case is ok then the problem is in the front differential or one of the many universal joints that connect all of the elements together. Check the U joints on the front drive shaft for play as well as the U joints on each of the front wheels.

call the repair shop my friend...me thinkest your transfer case needs a little fixing