Where is this oil water mix coming from ?

[Mellemel]

Just to set the scene as it were, Feb I had both LBJ replaced, the drivers side failed and that pulled out that side drive shaft, there was no damage to the CV joint that was pulled out, (I think that's what it is) I now have an oil leak from where it pushes into the transfer case, is there a seal in there ? On the photo I am now seeing what I think is that mayonnaise mix of oil and water, it doesn't seem to be dripping down from above rather being sprayed out as the axle turns from where the rubber boot is held on with that metal strap, I cannot see or feel any splits however, hope you can see it on the pic. It's the creamy colored stuff to the right of the bolt.
I am not loosing oil or coolant, although it only started a few days ago and in a small amount so far. Anybody know where it's from or what it is ?

 

[gamefreakgc]

Are you sure it's not white lithium grease coming from somewhere? That's what it looks like to me. Your transfer case is most definitely leaking though.

 

[Mellemel]

would there be lithium grease in the rubber boot ?

 

[gamefreakgc]

I want to say yes, but I've never done CV boots/joints yet on the 4Runner so I can't say with certainty. I can say that every other suspension/steering/driveline part I've done has always had white lithium grease under the boots so it's very likely. Hopefully someone else with knowledge will chime in.