Originally Posted by neal0124

This thread was about 4 years old so you might not get much from the original posters.

This link below is an awesome tutorial for how to fix the leak the proper way. It may seem overwhelming but I swear it isn't. For about $15 you can seal the actuator back up with new o-rings and replacing the c-clips on the shafts. (I wouldn't bother with the small shaft seals, just the big o-ring that goes on the actuator). The only specialty tools you may need is a transmission jack, a big assortment of socket extensions, and a tube of rtv gasket maker.

The hardest part is dropping the case gently and reinstalling it, the most tedious part is cleaning all the old rtv off the sealing surfaces.

I did it in a day and I swear the case shifts into and out of low range almost immediately now, and is nearly silent while doing so. Before it took forever to shift and made all sorts of clunking noises.

Fixing the transfer case shift motor leak from within..