Transfer Case 'Repair' Idea
 

This may be a shocking suggestion but I need this car to run.

I have a 1996 Subaru Legacy Outback. I was not aware of the damage that could be caused to the transfer case by using the spare for too long. A mechanic has said that my transfer case has been chewed up inside.

I am wondering if, instead of replacing the transfer case (an expensive job), that it could be perhaps removed and not replaced or perhaps mechanically disabled? I would be ecstatic to have at least FWD working! My own mechanic does not know.

I have tried the fuse to deselect AWD but it doesn't work. I am assuming that whatever damage has been done to the transfer case is currently keeping this disengagement mechanism from functioning.

Also I am wondering if it is necessary to replace the transmission when a transfer case is damaged? No one has suggested this and I have not found any suggestion that when a transfer case gets chewed up the transmission itself is likely to have been damaged. How likely is it that transmission has been damaged and will need to be repaired also or replaced?