Water in my axle and t-case! HELP!

Wheeling this weekend in a place off River Road (For those who live in the
Seattle area - 167). I got into some serious mud/water, a few feet deep.
Deep enough to cover the hood of my 80 Ramcharger with a 2.5" lift on 31's.
The hood was only covered when the front end into a dip/rut.

Anyway, this turned the front axle (Dana 44) lube into a brownish milkshake.
The rear diff managed to not get any water inside. AT fluid appears OK.
Haven't checked the transfer case out yet - is it sealed? The t-case does
make a pretty good grinding when going from 2hi to 4hi while in motion. Goes
smoothly into 4hi when stopped. Makes a light grinding when in 4lo and
moving (after stopping and shifting into 4lo).

I had to drive about 30 miles after the water, after a few miles in 4x4 to
get out of where I was. I drove the 30 miles in 2hi with hubs unlocked. Even
though I was in 2hi with free hubs, the front driveshaft was still clunking
pretty good when I would let off the gas and coast. The front driveshaft
turns back and fourth between 1/8 and 1/4 of a turn. Lots of slop. Bad?

I pulled the cover, drained, wiped out, and cleaned the front axle. I
sprayed the crap out of everything with B-12 Chemtool, and then wiped out
all the crud. Let it air dry. After, I blew the entire inside out with
compressed air.

After that, I refilled the front axle, ran it on jack stands in 4hi w/locked
hubs for about 20 minutes at about 25mph. Pulled the cover again, drained
the new fluid out, and wiped the excess out. Blew the rest out with
compressed air. Put the cover back on, haven't re-filled it yet (waiting for
gasket sealer to cure).

What is the clunking? Is my axle ruined? Is my t-case ruined?

Thanks,

Carl