Ok, I now know what happened here. First off I blew the transfer case again (and fortunately, Volvo and the shop are warranting the work and the parts.) About 6 months ago, my shop recommended I should have 4 tires added, because 2(only 2 were replaced) were worn without diagnosing the problem of why the tires were worn (see the next sentence for the issue). The issue was bad tie rods and worn busing which were replaced about 2 months later and still the tire issue was not revisited. Around Thanksgiving, I took the car from CT to WV, about an 8 hour drive. We blew transfer case #1 around Pittsburgh, PA. Around the beginning of December a new rebuilt transfer case was installed and again no new tires (are you seeing a pattern here??). A week later we blew transfer case #2 on a trip back to WV (I was visiting family for Christmas). So now, we have ordered transfer case #3 and new tires. The moral of the story: always have matching tires on your AWD vehicle. They have to be properly inflated as the transfer case is very sensitive.