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This may sound stupid but.... I was going to change the fluid in the transfer case of my 01 F350 PSD and when I checke3d the owners man. it said to use mercon. Isn't tranny fluid to light of an oil? I have never heard of this before so it threw me some.
I recently changed my tranny and transfer case with Amsoil ATF. Some people thought that wasn't correct, but I called a local Ford dealer and another shop, and they agreed that I needed ATF. It's my understanding that if it's red, it's Mercon, which was what my Amsoil ATF was.
At www.wholesalesynthetics.com, there is a link on the right side of their website in the red box for the powerstroke. It shows the recommendations for the fluids and the amounts needed. The only one I don't agree with is for the rear differential, which they said use 75W90. The manual (at least for my 99) said to use 75W140, which was what I used. I changed everything, except the radiator fluids.
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