Yea, that stain/puddle on the ground looks oily and not just water wet. Plus it looks like trans fluid getting ready to drop off that u-joint cup on the driveline.
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I can’t for the life of me tell from those pictures what the fluid is. If I zoom in at the bottom of the driveway pic it looks like water but the reflection above looks slightly pink. And there’s a drop coming off the u joint but nothing coming out of the tail shaft or seal so it might be dripping from above. What color is the fluid on the driveway Scott? Does it look like trans fluid or not?
Looks like it's time for a new one. Funny thing, that looks like the seal on the back of my transfer case. If I'm reading the books right, yours should look completely different. I'm coming up with 8677268 for yours and installed with J-21426 but could be wrong.
Bummer. Rear seal then. That’s a lot of leakage.Sorry for the lack of details on the color. It's definitely trans fluid based on color.
I believe you should be looking at the output shaft seal, the rear seal on the trans itself. That much fluid means to me that your rear seal is leaking pretty good and filling the extension housing up and then leaking out the back of it. It should only get a small amount of fluid in it. Every time I have pulled my trans and separated the extension housing there has only been a small amount of fluid in the extension housing.Is that the part number for the transmission extension housing or the seal? The trans extension housing I purchased came with the seal already so maybe I have the wrong trans extension housing?
Anyway to determine the trans extension housing is correct other than with the dealer?
I believe you should be looking at the output shaft seal, the rear seal on the trans itself. That much fluid means to me that your rear seal is leaking pretty good and filling the extension housing up and then leaking out the back of it. It should only get a small amount of fluid in it. Every time I have pulled my trans and separated the extension housing there has only been a small amount of fluid in the extension housing.
I have never done one but I don’t think it’s too hard. Somebody that’s done one will chime in hopefully. Pretty sure it’s like an axle seal and those are easy.I am guessing replacing the output shaft seal is quite a task and likely pretty expensive to get it done by a mechanic?
And I’m not sure about that extension housing, the only one I’ve worked on is mine and it’s AWD so the extension doesn’t have that kind of a seal, it has a big o-ring that seals the extension to the trans and a regular gasket between the extension and the transfer case. The output shaft seal is at the rear of the trans before the extension. But it seems to me the seal at the output shaft on both transmissions should be the same, or do they move that seal to the back of the extension on a 2WD?If I am not mistaken, maybe Rockola1971 can chime in, that is the output shaft seal that the driveshaft is slipped in to in the pic. That design has the bellows cover at the end to help protect the yoke spline surface. You may have a output shaft bushing that is bad but you did say you replaced the extension housing and that would have come with the bushing and seal. The one here is the other design seal without the bellows: https://www.rockauto.com/en/moreinfo.php?pk=9483168&cc=1441039&jsn=2322
I have replaced a lot of those bushings and seals. The seal is a piece of cake but again when installing the seal use a seal driver if you can. The bushing replacement is a whole other story. It is not hard if you have the special removal tool and the install tool. If you used other tools than that I would bet you would damage the housing just removing the bushing. I am talking about replacing the bushing with the housing still on the transmission. Is easier if the housing is removed.
That bushing needs the fluid around it to lube it during use. I am no trans specialist but there has to be a flow of fluid to it to do that and of course the seal is to keep it all in.

Is that the part number for the transmission extension housing or the seal? The trans extension housing I purchased came with the seal already so maybe I have the wrong trans extension housing?
Anyway to determine the trans extension housing is correct other than with the dealer?
What brand was the new extension housing @YukonCrazy ? I’m wondering if it came with a cheap seal of it was aftermarket. Might just buy a new ACDelco seal and install it in that extension.
What brand was the new extension housing @YukonCrazy ? I’m wondering if it came with a cheap seal of it was aftermarket. Might just buy a new ACDelco seal and install it in that extension.