I was driving 75 MPH (speed limit) when suddenly I felt a lot of shaking, saw smoke then saw my rear drive shaft flopping down the road. Got the jeep pulled over and looked to discover the transfer case had torn off of the transmission. The bolts that hold the xfer case to the xmission were still intact but the transfer case housing had been ripped off. This seems...insane to me. What are the chances jeep is going to fix this given all my mods (lift, d60's, aftermarket shafts)? Probably 0? Has anyone else heard of this happening. I'll post pics later tonight.

 

The problem is caused by the type of cv joint that is used by most driveshaft people. For the JK lifted you have to make sure you get the high angle style cv joint. Do a search on the web for high angle cv and you should find several places that handle them.
The normal style of cv found in most driveshafts will literally tear the case apart as you have seen.

4wheeloffroad.com/techarticles/80_degree_driveshaft_high_angle_driveline/index.html

put the usuall stuff in front of the above and you will see what I mean