I have a 98 Dodge 1500 4x4. I came back after a week long vacation to find ATF all over my driveway. It is a slick from the the transfercase all the way past the end of the truck. I climbed under and it looks as if it's dripping form the front and back of the tcase.
I would have thought that if it's a seal leaking, it would slowly leak and not leak so much all of a sudden.
Any ideas as to what it may be?

 

Take it out, disassemble, inspect internal parts, reassemble with new seals and rtv. I did my 241 recently, wasn't so bad.

 

with that much oil - check for a cracked case.

 

I had a small leak in my transfer case. I broiught it to the dealership for warranty work, and they discovered it was cracked. I thought it as the tailshaft seal!

 

I took a better look. It appears to be leaking from the front where is bolts to the trans and it's dripping down to the center of the tcase becuase that's the lowest point.
Does the whole tcase have to be taken apart to replace that seal?

 

I think you can change the front seal, with just dropping the t-case.

 

Yes, the output tranny seal and input transfer case seal need replace.

 

This is the front of the tcase. Unbolt the 4 bolts to the input bearing retainer and it comes right out. then you can put in the new seal and bolt it back on. Simple stuff.

 

Well I got it all apart this morning. It looks like it's the tranny seal that has becom brittle and cracked in several places. I will replace it and the transfer case seal while it's apart.

The fluid in the tcase apears to be darker. It is oil, or ATF that is very dirty?

 

It was just fluid mixing together, use ATF+4 in the transfer case when you refill it, and check the tranny fluid level after your done. Park brake set, engine at operating temp, and in neutral.