Hi All just started the removal and repair of my gearbox. started taking out the transfer case and disconnecting the drive shaft some thick oil came out of the joint is this right??here is a picture of the oil leak

 

No its not right. You have oil leaking out of the transfer box via the splines of the drive flange. To cure it when re-assembling put sealant on the output shaft before fitting the flange and again on the shaft before fitting the large nut. There is a TSB covering this, cannot remember the number at the moment.

 

Here is the TSB issued for the early cars.

bob gauff

 

i thought is was a bit odd thanks for the TSB will do that on the bench when i take the transfer case out