Sounds pretty bad.That axle should have slid in no problems and should slide out no problem.
Have you tried tapping it out from the bearing using a peice of wood to help protect the bearing?

 

Tech, thanks for responding. I still haven't got it out of the transfer case yet. But after looking at the old right hand drive axle and trying to pull the axle out I realized that it seems the drive axle is locked in. Everytime I try to pull it, the whole tranny moves with it. But as I look at the old drive axle, there's no circlip or any other pin that would lock it in place. Would this locking device be the traction control? I've tried putting it in neutral, drive, and reverse to see if I can pull it out but no success. I've jacked up the driver side and try turning the wheel and this is what happens: when I turn the driver side wheel in drive , park, and reverse both axle rotates. But when i turn the axel on the passenger side in park, I can't. the axle seems locked. Is there something prohibiting the axle to rotate. For example when you jack up both sides on a car only one wheel is turning when you put it in drive. When you give it a little gas both wheels would then spin. Guess I'm just rambling now. What's the correct gear to be in when your taking out the drive axles? Hopefully I can post some pictures up of this DIY nightmare!

 

You can replace it in any gear that doesn't matter.
Is it in there straight or is it on an angle?
Did the new axle look exactly like the old one?
Something is definitly fishey here.It shouldn't lock in the clamp that bolts on around the bearing is what holds the axle in.
Im hopping the splines were exactly the same.

 

Tech,

I'm not sure if it looked "exactly" alike. I should've checked carefully. It's in straight but I can wobble it a few mm up and down and side ways. It just feels like it'll pop out but just doesn't. I've tried tying a rope onto the axle and the other end onto a 30lb dumb bell and swing the dumb bell. But no success. Any more ideas? I'm not even sure I can put the wheel on and tow it to a shop.

does anybody know where I can get a cutaway or diagram of how the axle is suppose to look like when it's seated in? When you were refering to the clamp that bolt around the bearing is that the one that's outside bolted on to the trannny wall?

 

The bracket that is bolted to the engine block.The bearing slides into it and then the clamp goes on.If the bearing is seated all the way and the clamp goes on it is in all the way.Looks kind of like the picture I posted.

 

tech,

I see what you mean.

The axle still has about a 1/2 inch before the clamp can be bolted on. I'm wondering now if the axle was too long. Well, I won't know until I get it out to compare. If I ever get it out.

Hope the pictures post up. If you look at the picture theres that 1/2" gap.

The other picture is of the old axle where there dosen't seem to be any clips to be stuck to. Anybody know how it's seated in the tranny?

 

It just slides in and stops when the bearing is seated.
Have you tried tapping on the bearing using a peice of wood and a hammer yet to try to get it out?
That is about the last thing I can think of.
Not unless you can find a big slide hammer and hook it onto the inner part of the axle.

It might also be to long It doesn't always slide in to the ridge.
Can you take a pic of the bearing area like in the pic I posted?