Sounds like your front axle disconnect is not working properly. If it is disconnected while in 4wd, you will get the over-reving you described. The Clunk was probably the splined coupler popping off the right front axle in the shfter housing.
Take off the skid plate under the front right part of the axle and make sure your vacuum actuator is working properly. There are posts on here that describe how to lock it in full time. You can still use the switch on the fly functionality of the TC, driving with the front locked in does not hurt anything. Driving with the front disengaged while in 4wd WILL hurt the TC, specifically the viscous coupling if you have one.
* I will re-phrase and add.
Based on your last comment, driving in 4wd, then it started over revving and not accelerating, I would guess your front axle disconnect is not working correctly. Others should be able to confirm or suggest otherwise. I would check that first.
If you manually switched the TC from under the car, and did not rotate far enough, you could have popped into "false neutral" as well.