it calls for mercon in transfer case is allright to use merconv bandito:

 

NO, it calls for mercon use mercon. mercon V has additives (i think i read somewhere the additives can damage gears and seals, not sure if it's true) but if it calls for mercon theres probally a reason

 

I used it in mine. no problems so far. And their shouldnt be any problems either. I also run MercV in the power steering.
I have seen in some other posts the internal seal between tranny and xfer case leaking, causing an overserviced xfer case. IMO, i would want both fluids to be the same to prevent cross contamination.

 

Use Amsoil ATF!!! You can use the ATF in the transfer case, the tranny, and the power steering. Do some searching and you'll find great results and proven performance.

 

Mercon V is now approved for use in Mercon applications.

 

Just like the power steering, the transfer case ain't picky as modern automatics about the fluid used. No brand ATF works for me in the xfer case.

Adrianspeeder