As I was removing the old drive axle, the shaft came out of the transfer case. I now can't get the shaft back into the transfer case. I've applied moderate pressure, but to no avail. I'm tempted to put the old hammer and block of wood into it, but can't afford to break anything. Do I have to open up the transfer case?

 

Are you saying that part #2 in the diagram pulled out of axle tube? Or the inner CV on the driver side pulled out of the differential?