When on ice and the SLIP light goes on, I hear a noise that sounds like somthing rubbing against plastic. Anyone have the similar issue?

That's the ABS system reining in the slipping tires. Same sound you get when you slam on the brakes, right?

Yep, it is the ABLS/VDC doing its job. You will also hear it if you were playing in mud, sand, loose gravel, anywhere that the wheels slip or the Xterra starts to slide. It is all normal.

This is funny cause when my X was trying to climb a hill with one wheel in loose dirt and the other in firm ground, i just kept spinning one front and one rear. No pulsating brakes or transfer of power to the non-spinning wheel. I thought that was what ABLS did. Of course bringing it to the dealer did nothing because they have no way of testing this and they say 4x4 X's dont have ABLS. WTF!!Im gonna try my truck out in the mud and up some hills again and try what other members told me(wait about 3-5 sec for the ABLS to do its thing). Its just weird cause sometimes the ABLS works and sometimes it doesnt. Anyone else have this problem?

I don't always get the noise when I'm slipping but I do get it when driving through really deep loose sand. I'm still not use to hearing that sound.

Speaking of the "slip" and the noise that it makes. I just put on the Clamini 2.5 inch lift on my 06 X and upgraded the tires too. Now whenever I go around any "hairpin" roundabouts or on-ramps, the slip light will come on and the noise will sound. I'm not going nearly fast enough to warrant the sound or anything. Curious as to why this is? Any help?