From what I have read from Mike L.. I could be the transfer case or speed senor...
Correct.
P0777 indicates an off going clutch did not get released fast enough before the on coming clutch applied. ( tie-up ) It's important to know on which shift this code was thrown. If it was 3/4 it can rip the spline off C2 hub and P2 planet. Get it fixed before you hammer on it any more.
I just got this code tonight as well. Same situation, rolling into it on an on-ramp. First time the truck was WOT after sitting for 6 months.
How do you know which sensor needs replaced? TechII?