Was thinking of something. Would the Amsoil diff fluid I just put in a month ago & the diff fluid the dealer just put in be different colors by any chance? If so that would be great then I could just finger the leaking fluid & look at the color. Probably the same gold color though?

Dealerships do such great work...

I'd for sure take that back and make them do it again and again until they get it right.

Oh I am snow. Was suppose to take my truck on a trip to Florida with the family for 10 days to leave yesterday. After seeing all that fluid Friday there was no way I could take it. Luckily borrowed a buddys truck to save my trip. Its a Chevrolet Silverado which I'm not a fan of, but doing the job. I'm now in Atlanta as I type. I have a knot in my throat from this.

Front doesn't turn unless you are in 4wd so you would have been fine road driving..

Thanks 99f350. I see so the front driveshaft doesn't turn out of the transfer case untill you engage 4wd. Maybe I should of brought it then so I could of brought it back bone dry to them.

Just back home from vacation. Took the truck to the store & decided to try the 4wd since the install of the new vacuum seals & dust boots. Engaged fine but when I went to switch back out to 2wd she thumped then soon as I was coasting to a stop banged a few more times & heard a little grinding sound. I was like WTF u gotta be kidding me. I have used the 4wd all summer actually every weekend pulling my boat in & out the lake. 4wd has always worked flawlessly with no noises or leaks.
Passenger side axle seal continues to leak since work performed 10/10/11.
I have cleaned the knuckle several times with brake/carb cleaner & fresh fluid continues to flow. I am about to drop her back off at the dealer today shortly soon as I can find a ride. Im pulling my hair out now with this thing. Am I entitled to a loaner as this is Fords baby? This truck is my only vehicle now as it is too cold to ride.

Last time that happened to me, with the clunk and all, my axle u joint blew

Just come back from Home Depot & also noticed when turning steering wheel vibrates like 4x4 is on but its off. Also shaft coming out transfer case to front diff is turning. Is it suppose to turn in 2WD?

Sounds like a hub may be locked in or the transfer case is still in 4x...Prob a hub..get manual hubs if you want no problems.

The OP has an 05. There is no aftermarket hub

Top pic is original delivered seal as in my 2005 F350SD 4x4truck. Both mine tore apart like yours,but just a dust seal. Lower pic is replacement seal and is a Dana service bulletin upgrade replacement. Apparently they just did one side, lower pic, with upgraded seal and did not do the other side at all. Should be no oil coming out unless inner diff seals damaged when outer dust seals changed. I am a professional helicopter mechanic and I did both my dust seals about 4 months ago on my 05.

**UPDATE** Appreciate the replies first of all. Dealer changed both inner axle seals & both auto hubs. Also found 1 u-joint that was tight replacing it also. No leaking now & 4wd works flawlessly again. Amazing how I needed all that after dust seals & vacuum seals. Sure am thankful I purchased an extended warranty. Thank you all for your input.

don't mean to revive this, but my truck has the same probe on passenger side. i have the updated dust seals on both sides.

it only leaks when i engage 4wd. i don't use 4wd so i guess i'm fine. still, i need to fix this.

Man. that is suck a pain in the ass-prin-bottle!!!

had this on my 2000 once. If I remember right there are two seals. one futher down the shaft inside. It really shouldn't get to the other seal. But if it does. then It's trouble....

and there a tool to knock them in with. If you or " THEM " didn't use the tool then you CANT do the job.... " My understanding "

I would holler for ever until they fix it