Aye ! she's sprung a transfer case leak...
 

went down below to install a different vss gear and I found this:

damn ! u-joints and seals ?

http://www.wannatonka.com/images/f150/1.jpg

http://www.wannatonka.com/images/f150/2.jpg

http://www.wannatonka.com/images/f150/3.jpg

How much play in the output shaft? Is the bushing bad? Maybe a bad or out of balance drive shaft. The seal went bad for a reason.

there's a little play in there, should there be none at all or is some acceptable ?

basically, i'd just like a "heads up" from you pros b4 i take it in.

Pull the slip yoke off and examine it for any signs od wear.
My seal leaks and the bushing is shot. I have grooves cut into the slip yoke. Not a high priority as the damage is already done. When I get around to it I will replace the bushing, seal and U joints. I do not recommed that you wait. Check it and fix it asap. You may save the slip yoke if you get to it now. I was too late.

Regards

Jean Marc Chartier

leak
 

Why is the leak going forward on the trans? It should be a little drier before the seal. I would wash down trans and verify the leak first:D

Re: leak
 

My thoughts exactly. That also looks more like engine oil than tranny fluid. is there any red to it all all? That may be a valve cover or rear main seal leak blowing oil back.

Looks like the rear seal leaking to me. Every ford I have had eventually did it. I weeps from the seal and runs down the housing. Thats why it looks the way it does.