Transfer case trouble

[QuickSilverGSX9]

My transfercase is leaking at the driveshaft, there's gear oil all over the exhaust and undercarrige of the car. I found this out because I was checking the rear end for a noise I heard earlier in the day. I had all 4 wheels off the ground, put the car into first and slowly let off the clutch and the car actually stalled out. I had to give it gas to make it not stall, anything below 1,500 rpm's and the rear wheels wouldn't turn. So, I checked the oil level in the x-fercase and it was pretty much non-existent and then filled it up. After that, the rear wheels would turn like they should, and the car could be in first gear without me giving it any gas and it wouldn't stall. Now, my question is, what possible consequences would result from a dying transfercase? Also, what is the chance that my transfercase is still o.k. (as in not have to replace)?

-Bill

 

[gsx_tuner]

First thing I should ask you is, have you had your recall done yet on your TC? If not, read one of the first posts here in problem diagnosis, and see what you need to do to get your recall serviced.

 

[Defiant]

I just got a new transfer case. Fully warranteed.

http://www.dsm.org/archives/1998/02/19980224.txt/30.html

Here's pretty much the whole deal on the transfer case recall:

http://www.dsmtuners.com/forums/showthread.php?s=&threadid=19280

In a nutshell, the manufacturing method on the transfer output yoke lets the lubrication leak out of the case. In the DSM AWD scheme, if the transfer case locks up the whole driveline front and rear locks up, putting the vehicle completely out of driver control. The Feds have put the transfer case under safety recall.

I give full credit for mine being replaced to the service manager who dealt with Chrysler for me.