I have a '99 XJ with an NP 242 Transfer case. I tried to drive it on with a pipe and sledgehammer, but no matter what, it does not fix itself to the tail housing, instead, moving freely with the shaft. Is it supposed to move freely or stay affixed to the tail housing? Can I just remove it and not have it on there at all?

 

Pretty sure it doesn't attach to the tail housing. Spins with the drive shaft.

 

dont know, but just saying...it wouldnt be much of an "oil slinger" if it was static, so I would guess it moves with the shaft

 

Im going off memory here when I did my SYE a couple years ago. I remember having to cut it off the input shaft to get it off but dont remember it even touching the case. I think a better name for it would be a dust boot so you dont get junk in the splines.