Overfilling the t-case should not cause it to leak from rear output.
That part, where the hole is, is more of a dust shield/scraper for the yoke. Actual sealing lip is inside of the part.
And to test the bushing, you'll need to keep the driveshaft in place, and lift the driveshaft and look if there's any play at the seal. I usually change the bushing all together whit the seal, but last time I didn't find it. So far the seal has not leaked

 

interesting, any idea why there is a weep hole then? When you change the busing what tool do you use? Any advice on how to remove a stuck seal?

 

Since you don't care about the seal, and its just a pressfit.... You can destroy it taking it out. Just don't marf up the tailshaft housing.

If you want to change the bushing, I suspect removing the tailshaft housing becomes necessary, and you and drive it out with a bearing/seal driver. (which you can rent from the local parts stores, if you don't have one..... )

 

thats an idea!
ill have to make a new Rtv gasket which I’m never got at for some reason but practice makes perfect!

 

is the bushing the only other culprit that could cause the leaking? I’ll probably give it all a shot tomorrow

 

Bushing just holds the slip yoke in place properly, if it isn't sloppy, (slip yoke has some play side to side....) just leave the bushing, and change the seal. If the bushing is worn to the point the yoke can move around too much, yeah, that'll eat seals.

 

theres no slop in the yoke. But it leaks like crazy out of that weep hole until the transfer case runs dry. I’m just making sure there’s nothing else that may need to be replaced that might be contributing to it other than the seal, which I already have in hand. Should the weep hole be facing down like it is? Should I maybe point the weep hole facing up on the new install?

 

I think the actual seal is further in, and what you see there is just a dust boot. Hole maybe be water drain, or some such. Think I would still leave the hole facing down though. Be sure to liberally lube the new seal before you stuff the driveshaft into it.

 

what about the transfer case saver mod? Would that be a good idea to get done now?

i don’t know why exactly but I just feel like there’s more to this leak than the boot. (Maybe it’s cause my last transfer case exploded and I’m just being overly cautious?)

 

Absolutely since you are about half way there already. I found it easier to drive the seal in when the tail housing was inside. Could be being overly cautious. If the yolk is tight then it's most likely just the seal