I think you're probably right - the transfer clutch is worn, so it slips before it engages.
As for how hard it is to fix, that depends - are you planning on doing it yourself?You don't have to drop the transmission to do it, but I would rate this a pretty delicate procedure. I also recommend replacing duty solenoid C at the same time. You might as well - you're going to be in ther anyway.
Part number varies, and here's what makes is a pain in the ass: you don't know exactly what you need until you take it apart. The first plate in the clutch pack can be one of four thicknesses - and all four sizes are within 2MM of eachother. So you have to take it apart and measure that plate before you know which part number to order. Nice, huh?
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