You do know the 205 is a passenger drop, right? All gmt-400's are drivers side drop with ifs, all GM 205's were passenger side drop for asolid front axle. Ford had a drivers side drop version, but it used a different bolt pattern. And only the 91 GM 205 came with an output speed sensor which your 97 MUST have. It costs a fair amount for the aftermarket pieces to add a vss to an np-205. Don't forget the weight difference. A 205 weighs roughly 200 lbs iirc vs the 70 lbs your aluminum case weighs.
You COULD make a 205 work, but why? I know many are obsessed with them and convinced the cast iron case with all gear transfer case is stronger, but this MYTH has been proven false time and time again. Many have broken the 205 and proven it isn't bullet proof. I don't see any reason to get rid of your current transfer case unless you're one of the ones scared of the push button setup(which have proven to be pretty reliable really), in which case why not swap over to a np-241 floor shift which came stock, and could easily be swapped in if you get the right model/input shaft. And be extra carefull on the 205's, not that many models came with the 32 spline input from my understanding, I believe the 19 spline was more common.