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no whining is not normal, I would just source another 218, they are plentiful and the 242 is only marginally stronger and as 86humv pointed out you will have to change the drive shafts, one of the reasons they went to the 242 was the same basic case was used in civilian vehicles so NP dropped the 218, there was certainly no need to go to a slip yoke with fixed diffs.I'm kind wondering that whinning sounds is normal , it's very loud and annoying
I am curious how you know it is the transfer case and not one of the differentials, the most common cause of abnormal "whining"
You can also take an oil sample and have it tested, if there is a big problem with the case an analysis should show it.
Edit, the gear hubs also have straight cut gears and for them to be noisy in normal, the diffs are frame mounted so they will transmit any noise very easily throughout the vehicle.
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