I'm guessing it's differential fluid. As I've always been into older sport cars, I've never owned a 4x4 before. I was changing the oil Sunday and saw that I was leaking fluid out of a box with a hose and a couple of wires run to it that was in the middle of the front axle. Is this the transfer case? It was put in 4Low awhile back, and it grinded and spat some fluid on the ground. I didn't see where it was coming from but 4High works great. Any ideas on this?

 

That is your CAD (central axle disconnect) housing.

There is a cork gasket under the unit. You can just pull it off...clean up the surfaces and seal it back up with silicone or RTV. You may want to change the fluid in the front differential though if it's been leaking for some time.

 

T-Case is on the back of your trans. Drive shafts are connected to it.