Transfer Case
 

I have a 1995 Ford F150. I just purchased it in January. I have only driven it about 20 or so miles. I was under the truck this evening, and I just happened to notice the rear drive shaft. The Rear transfer case seal was out of the case, all the way back against the yoke. The rear output shaft brass bushing (I guess that is what it is called) was out of the transfer case, just riding on the drive shaft yoke. It wasn't tight to the drive shaft. I was able to turn it with my fingers. Has anyone ever seen this happen before? I've looked at my local part stores web sights (Autozone and Advance Auto), They don't appear to have the bushing. Only thing I can think to do from here, is to drive the bushing back into the transfer case, and put a new rear seal in it. Thing of it is, the guy I bought the truck from had put another transmission in the truck as part of the deal, because the reverse was out of it. He had to have known it was like that. After all, you have to pull the drive shaft while removing the transmission.:-huh

I wonder if your driveshaft is out of balance and worked the bushing loose?
Or if that case is low on lube it might've spun the bushing too.

I'd check the oil level (it takes plain Mercon transmission oil) and then see if that bushing is tore up.

Here's a parts diagram if it helps:

http://www.southwestgear.com/index.p...emart&Itemid=2

And you can also order any parts you need from them... I had a good experience with them when I ordered parts for my rebuild.