After screwing up with the crossmember, I didnt want to mess with anything else. Took it to a transmission shop, explained what needed to be done, and it took them an hour. Payed 100 dollars. I watched them do everything and now I believe I could do it myself next time.

I went to 4 different shops who told me this was an all day job and were charging way to much. I believe this is because they misinterpreted which seal needed to be replaced/ were not familiar with the cherokee. That, or they were trying to screw me over. Watch out for mechanics in so cal. Thanks for everyone's advice. The seal that was replaced was the front output shaft transfer case seal. Picked up the seal at Auto zone. Need to make sure you get the right one for your transmission. No more leaking!! Dont forget to refill transfer case.