So I've found the leak. It seems to be where the trans meets the transfer case. How big of a job might this be to drop the transfer case and hopefully just add a gasket?

 

Taking the transfer case off isn't that big of a deal. The question is, why is there fluid between them? I did a thread about what I did over my quote/unquote vacation this past summer. I had fluid in the farthest rear section of the transmission. I was told it was no big deal. But if you have that much fluid coming out the back you probably have something going on with the tail shaft of the transmission rather than the transfer case gasket.

 

Does the transfer case share fluid with the transmission? I'm flushing the trans next weekend and if it does, I'd rather not replace the fluid again after flushing it, I'll just bang it all out while I'm under there.

There's a guard in the way that is preventing me from getting a good look, I'll see if I can take that off at some point and get a good look. I don't know as well as I should about the trans or what's going on down there.

 

No. Trans and T-case have separate fluids, although they both use Merc V. Dropping the t case is pretty easy. Probably just a bad seal or gasket.

 

I'm on vacation next week to work in the house so I'll probably start this weekend. I'm worried though, if the transfer case is leaking like that, how is there any fluid left in it?

 

Take it to the quarter car was so you will know where is comes from............maybe just loose bolts. Yes when things leak they go dry.