its just a little bit right on the u-joint everything looks dry its just that one spot any ideas
its a 03 2500 4x4 with 65,000 on the clock

 

i'm thinking transfer case. I don't know if the 2500s are any different than my truck, but i think the plug to drain the transfer case is right about where you are saying. take a look and see if it's leaking from the plug.

if not, try to get a good pic of where exactly it is

 

xfer case often uses tranny fluid so xfee may have made a good call. It's gotta be tranny or power steering fluid for sure. So I'd check out all three things...

 

I looked at the xfer case found the drain plug its dry i took to pics of it
http://i280.photobucket.com/albums/k...s/461918d8.jpg
http://i280.photobucket.com/albums/k...s/ded017a4.jpg
there is no trail were its coming from i traced all 3 things that it could be

 

it might be coming out where the driveshaft goes in. the shaft will fling most of it off when driving, and the rest settles to the bottom of the shaft. there might be a spray pattern of fluid above the shaft if that's what's happening. but if it's very little, you'd never see it. you might also want to check the fluid level in the case, but same thing, if its very little you may never notice. try putting a white rag or paper towel where the driveshaft goes in and seeing if you can get any red.

 

Check to see if its leaking out of the center or the yoke. I have seen this to be a problem.

 

it dose have a fling mark on the bottom of the cab i had it in the air doing a oil change it looks like its coming from the yoke