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I’ve been doing some searching on this fix and it seems this isn’t leaking from the typical seal location. I haven’t seen a post on this particular spot, wondering if anyone has dealt with it.

it seems the leak is from within the shaft maybe through the splines or the small gasket behind the nut in here? I bought the whole seal kit for this 241 and a new nut since the manual said not to reuse the original after torquing.

Its dripping quite a bit. A buddy of mine said it’s a wet seal and just needs to be ran in 4x4 to seal up but I haven’t read that anywhere. Level of fluid is right at top bolt

Any tips and advice much appreciated thanks guys

908355
 

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Looks like its leaking between the yoke and splines. I would install new seal and put rtv on shaft splines before installing yoke.
 

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You should also inspect/ replace the front output shaft bearing. Many times the bearing gets worn and takes out the seal. If the bearing is worn, replacing the seal will just be a band aid. It will start leaking again. If the output shaft has play and slop in it the bearing is worn
 

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You should also inspect/ replace the front output shaft bearing. Many times the bearing gets worn and takes out the seal. If the bearing is worn, replacing the seal will just be a band aid. It will start leaking again. If the output shaft has play and slop in it the bearing is worn
Oh awesome info, thanks. Does the transfer case have to be pulled and rebuilt to replace that bearing or can it be done under the truck when I’m doing the gasket?
 

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My truck started leaking after the trans overhaul. The work was under warranty, so I had them fix it. All he did was put RTV on the flange and reinstall the driveshaft.

There is a small castellated washer type seal for the where the flange slips over the splines of the shaft. If your outer seal in the case is not leaking, that spline seal needs to be replaced. They are cheap, but a PITA cause you have to remove the nut to replace it, which includes replacing the nut yet again. The P/N for the seal on the 241DHD case is 04210973. Item 39 in Figure 241-410 of the 97 parts manual.
 
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