Just refilled the transfer the other day (been real busy and haven't checked it in a while). 300 mi later I've got a nice oily mess under my truck all down the shaft and back axle - I'm leaking fluid out the side of the transfer. It looks like the seal in the center of the housing is cracked to me. It looks like most of the oil is coming out by one of the housing bolts....

Anyone have any experience with this? Any idea on the cost to fix? I checked the bolts on teh transfer housing and they're all tight and it looks like the oil is coming out of one of the bolts on teh passenger side.

 

Hey SuperDDD, Did you ever find out the fix for your transfer leak? I am having the same problem. 02, 2500 HD, 8.1 liter with 4.10 rear-end.
Don