SYE kit problems?
 

My buddy has a tj, i know its not a Cherokee, but he's had a squeak a while but it hasnt been that bad, but the last couple days its gotten worse and tonight it turned into a little rattle. it was coming from what thought the axle but when we got under there there was a purple fluid leaking from the SYE kit he had put in about a month ago. Has anyone else had this problem? if so has there been any damage to transfer case or anything else? Thanks for the help guys