So I've started my rebuild of my donor transfer case and can't seem to find out how to get the output shaft off, I have circled what seems to be the issue in getting the case apart.

 

your on the wronge page. dont quote me plz but i do belive there is a snap rin on the inside of the case. undo your bolts and it should slide apart. after apart remove snap ring, then slide shaft out.

 

It seems to be held in by something, your saying that the housing should come off after the bolts are taken out? No other snap rings or anything?

 

they may have used a **** load of silicone or rtv i generally do when i rebuild one. and i belive the snap ring is on the insid of the case.

 

They really abused the RTV on this for sure so that's got to be it, this being my first T-case tear down I didn't want to damage anything pulling that off.

 

under the rag there should be a few bolts to pull the shaft out and i still see a bolt holding the case halfs together

 

I was trying to get the housing off before I tried to take the halves apart, I didn't want to get a head of myself.

 

The piece that you have circled, does it come off? My xfer case does not have this piece.

On my 231, there is a snap ring that you have to remove to get that rear housing off, after removing the snap ring I used a puller, so I wouldn't damage the xfer case housing

After looking at your picture again, it looks like you should be able to slide that piece you have circled off, and there should be a snap ring, the snap ring is very difficult to take off, it is a lot easier with snap ring pliers, if you use screwdrivers more than likely you will need a new snap ring