Transfer case bushing? Hysterical.
I recommend the three mods below.
Note: ANY H3 STEERING PROJECTS REQUIRE THE STEERING WHEEL TO BE LOCKED prior to swapping out parts. Do not ignore this, as it can be a very expensive repair if the wheel gets turned while the steering is disconnected. The cheapest/best method is to simply tie the steering wheel to the brake pedal while performing any steering work.
Start with an
aftermarket steering rack mounting kit. The stock bushings are way too flimsy and they allow the entire rack to move back & forth. This can make clunking and popping sounds and also make the truck "wander" from side to side. Also you cannot properly align the steering with worn rack bushings/clamp. Make sure you get a kit with both urethane bushings at the mounting bolts (drivers-side), AND an upgraded clamp (passenger-side). Some kits have just the clamp which is only half the problem. Outfitter Design makes a nice one...
Outfitter Design Steering Rack Kit
You might also consider new
front diff bushings, as these are often smoked. There are two outboard bushings that are soft rubber, and another one embedded into the crossmember. These bushings allow way too much movement at the diff and you will typically get a rotational "clunk" when getting on/off the throttle. Upgrade these rubber units with urethane. Outfitter Design (Korby's link above) also makes a kit for this...well worth it. While you have it apart, check the crossmember for small cracks at the ends, which is very common. You can weld em up or replace the crossmember with a good one.
Lastly, another common issue is the
intermediate steering shaft. This is a short shaft that connects the column to the rack. It has a small u-joint that is prone to rust and wear, and when they go bad...it makes a bunch of clunking sounds. It can be inspected via the drivers-side wheel well. Replacement is pretty straightforward.
This is all standard "H3 maintenance" stuff and not due to any abuse. Its just a crappy design that requires a lot of attention. Every H3 with a 100k miles will benefit from these upgrades.