Notices my transfer case is leaking around the tailshaft where the driveshaft goes into it. Is it the output shaft seal? Hiw do i change it.

 

It appears to be a leaky output shat seal. Here's a pretty good video on how to change a seal on a 97+ TC.


A few comments:

I put the TC in neutral so I could rotate the output shaft to make it easier to align the drive shaft at the differential yoke.

I had to chisel the slinger off it was on so tight. I cut a fore and aft slot in the slinger extension where the boot attaches using the chisel then drove the slinger off in a counter clockwise direction using the chisel. I got a new slinger (and seal) from the dealer. I had to do alot of sanding to the inside diameter of the new slinger inorder for it to slide over the shaft, then heat the slinger with a heat gun to expand it before driving on to the shaft.

When you get the seal out you may find corrosion in the seal seating area of the bearing extension. I had to use sandpaper to clean the corrosoin out. Stuff a rag in the opening to keep the crap out of the rear output shaft bearing. I used some RTV on the under surface of the lip of the seal before installing it.

I used cable ties to secure the boot to the slinger and the drive shaft.

Before reinstalling the drive shaft, grease the splines on the output shaft with high pressure grease.

Use new attach straps and screws for the drive shaft u-joints.