Leaking transfer case..

the input seal to the transfer case may have been damaged on installation, seeing that its a used unit seals may have been worn and should have been replaced befor install

Sounds like a bad seal to me. That is the most likely problem. If you replace the seals you should replace all seals and gaskets at the same time since you have already gotten in apart and this will keep you from having to turn right around and disassemble again when there is another issue later. Best to do it while it's already apart since it will save time and trouble in the future. If this does not help you I apologize.

the engine and transfer case are to totally different monsters your transfer case controls the four wheel drive if your engine was leaking oil and they replaced some seals most likely they seen grease and oil on the transfer case and assumed it was leaking from the leaking engine that is directly above it even if you dont use the four wheel drive I would still sugest getting that fixed because the axles still turn inside there and you dont want those bearings drying up and going bad

• Transmission output seal or Transfer case input seal is what you are looking for depending on which is leaking. You will need to separate the two to see. Many times you can buy a gasket kit for this job that has both.
• Hope this helps.

Regards, Tony

there is a seal right there you can side it back and put a new seal.

I assume this is a truck, you will need to remove the driveshaft and then remove the bolts holding the transfer case to trany, theres a gasket that goes there but the real problem is the seal, once you remove the transfer case look inside the rear of the trany you will see a seal that seals that shaft replace that seal there should not be any oil in that space, hope this helps.

its not hard to do you need a gasket and seal kit too the hardest part is seperating the case halves . do not place a screwdriver in the case halves to seperate you will cause a leak ! remove the nuts on the yokes first then the case . mark with a scribed line and remove the trans speedo cable assembly set it aside tap and pry the case halves apart pull off the back half of case the front half is where you want everything to stay in place try to keep it standing up so rear case is up then you can lift up the front output shaft the chain and the planetary remove the rest of parts install new seals and reassemble the case uses rtv black sealant instead of gasket

2.0L Engine

1. Disconnect the negative battery cable.
2. Drain the engine oil.
3. Remove or disconnect the following:
   Engine undercover Front exhaust pipe Lower oil pan bolts and lower pan Cover Upper oil pan bolt and upper pan Baffle plate
   
   Fig. Oil pan and related components-2.0L engine
   
   

To install:

1. Clean all gasket surfaces of the cylinder block and the upper and lower oil pan.
2. Install or connect the following:
   Baffle plate
   
3. Apply a 0.16 in. (4mm) bead of sealant to the gasket surfaces of the upper oil pan.
   Upper oil pan onto the cylinder block within 15 minutes after applying sealant. Tighten the bolts as shown in the accompanying figure.
   
   Fig. Upper oil pan bolt location and torque sequence-2.0L engine
   
   
4. Apply 0.16 in. (4mm) bead of sealant to the gasket surfaces of the lower oil pan.
   Lower oil pan and tighten the bolts, in the sequence shown, to 88-106 inch lbs. (10-12 Nm)
   
   Fig. Lower oil pan bolt tightening sequence-2.0L engine
   Front exhaust pipe Engine undercover Oil drain plug with a new gasket and tighten to 29 ft. lbs. (40 Nm)
   
   Fig. Make sure to the install the new drain plug gasket as shown, or leaks will occur
   
   
5. Lower the vehicle and fill the crankcase to the proper level with clean engine oil.
6. Connect the negative battery cable. Start the engine and check for leaks.

Non-Turbo Engine

1. Disconnect the negative battery cable.
2. Raise and safely support the vehicle.
3. Drain the engine oil into a suitable container.
4. Once the oil has completely drained, install the plug and tighten to 25 ft. lbs. (34 Nm).
5. Remove the front exhaust pipe.
6. Remove the engine oil dipstick and tube assembly.
7. Remove the front plate.
8. Unfasten the oil pan mounting bolts, then remove the oil pan and gasket.
   
   Fig. Exploded view of the oil pan and related components-1999 2.0L non-turbo engine
   

To install:

1. Apply sealant at the point where the engine block meets the oil pump.
2. Use a new gasket and install the oil pan. Tighten the mounting bolts to 8.9 ft. lbs. (12 Nm).
   
3. Install the front plate.
4. Install the front exhaust pipe.
5. Install the dipstick and tube assembly.
6. Safely lower the vehicle to the floor.
7. Refill the crankcase with oil to the proper level.
8. nnect the negative battery cable.
9. Start the engine and check for leaks.

Turbo Engine

1. Disconnect the negative battery cable.
2. Safely raise and support the vehicle.
3. Remove the front exhaust pipe.
4. Remove the exhaust pipe and muffler assembly.
5. Drain the engine oil into a suitable container. Once the oil has drained completely, tighten the plug to 29 ft. lbs. (39 Nm).
6. Remove the dipstick and tube.
7. For AWD vehicles, remove the transfer case assembly as follows:
   1. With the propeller shaft still installed, remove the transfer mounting bolt.
   2. Insert a suitable prytool in between the transfer case and transaxle, then remove the transfer case from the center shaft.
   3. Remove the transfer case from the center shaft. Do NOT tilt the transfer assembly to the rear or oil will leak out.
   4. After removing the transfer assembly, insert tool MB991193 or equivalent, to prevent the oil from leaking out. Use a piece of wire to suspend the transfer case from the body.
      
      
      Fig. View of the transfer case with the tool installed to prevent oil from leaking out-1999 2.0L turbo engines
      
8. Remove the bell housing cover.
9. Disconnect the oil return pipe from the oil pan.
10. Remove the oil pan mounting bolts. Tap the oil pan seal breaker MB998727 or equivalent between the oil pan and the engine block to break the seal and remove the oil pan.
    
    Fig. Exploded view of the oil pan and sealant application-1999 2.0L Turbo engine
    

To install:

1. Clean the sealing surface on the oil pan and engine block. Apply a continuous bead of sealant MD970389 or equivalent to the oil pan.
2. Clean the oil pan mounting bolt holes in the oil seal case.
3. Install the oil pan to the engine block. Tighten the mounting bolts to 5.1 ft. lbs. (6.9 Nm).
4. Use a new gasket and connect the oil return pipe to the oil pan.
5. Install the bell housing cover.
6. If equipped with AWD, install the transfer case assembly.
7. Install the dipstick and tube assembly.
8. Install the front exhaust pipe.
9. Install the exhaust pipe and muffler.
10. Install a new oil filter.
11. Safely lower the vehicle to the floor and add five quarts of oil to the crankcase.
12. Connect the negative battery cable.
13. Start the engine and check for leaks.

Good luck (remember rated this help).

your output seal on the tranny or input seal on your transfer case is bad. you have to pull your transfer case to tell. this is a pretty straight forward job. block wheels. put transfer case in neutral. drop front and rear drive lines.diconnect transfer case shift linkage. there is a short commponent connecting the trans to the transfer case. the bolt on either end face each other. remove the bolts to the transmission. the transfer case is heavier than it looks, i suggest getting help. pull back on the transfer case until it will drop down. it will pull out a bit because of the trans output shaft. replace what will probibly turn out to be the tranny output shaft seal and reassemble in reverse order.

You mean between the case halves? It is just silicon, no gasket. These are good for the pump wearing a hole in the rear housing and leaking oil. The cure for it is a new rear housing and a piece called a case saver that keeps the pump from doing it again. Taking the transfer case apart to fix it is easy, I can tell you how to do it.