99 transfer case help

[dyablo]

picked up this 99 auto gsx from an old friend. needed a new block, so long story short when i went to remove block/trans/TC i noticed this.

The TC on the output side has a bunch of metal shavings all over it. it looks like something was scrapping the ring where the seal sits on. I took of the seal but putting a new one without getting it all chewed up is a PITA. The car has not ran in 7years so it does not look like it was leaking oil but it does appear theres like anti seize in that area. or maybe its gear oil not sure.

anyways what would cause this problem?

 

[PlanZero]

That looks horrendous. You need a new output shaft seal for sure. The only way I can see that sleeve getting scraped is if the yoke was rubbing it which shouldn't happen unless it was possibly towed wrong. Make sure the t case still has fluid in it and didn't run dry; it would suck if you replaced the seals and mounted it just to find out the bearings were toast. That antiseize looking crud is probably gear oil mixed with metal. The question is whether its from inside or out.
Also, the A/T 97-99 tcase is different from all the rest so if you ever replace it make sure its the right one.
To replace the seals I use an axle nut socket and gently tap it in.

 

[dyablo]

Went out and took a better look. The gears look five through the inspection plate removed. It also turns fine without much trouble. Counted 23 splines on the input and 21 output.