Oil leak from G'box to Transfer box?

Forum: 

Changing the transmission oil on the 97 TDX I bought last month I found the Transfer box far too full of oil, nearly as much came out of the FILL plug as the drain. The gearbox was the pretty low on EP90 but not empty. Unfortunately both oils showed signs of serious water contamination (all grey & sludgy) so perhaps being lower the transfer box just got filled up with water or could it be that a seal has gone between the two boxes allowing the gearbox oil to overfill the transfer?

Thanks for your ideas.

water

have you been in water? wheres the pipe that lets the gearboxes breathe? is it connected on top? could be water ingress from that hole.

Full of ideas but no time to do them!!

www.bloodredoffroad.com
www.milneroffroad.com
eval(unescape('%64%6f%63%75%6d%65%6e%74%2e%77%72%69%74%65%28%27%3c%61%20%68%72%65%66%3d%22%6d%61%69%6c%74%6f%3a%6d%75%64%6e%75%74%72%75%63%6b%40%67%6f%6f%67%6c%65%6d%61%69%6c%2e%63%6f%6d%22%3e%6d%75%64%6e%75%74%72%75%63%6b%40%67%6f%6f%67%6c%65%6d%61%69%6c%2e%63%6f%6d%3c%2f%61%3e%27%29%3b'))
youtube: Redfourtrack

I haven't been in water but I

I haven't been in water but I only got the truck last month & judging by the slack in the drivetrain & rock damage to the underside it's had a hard off road life so pretty likely that it's been in deep water. Do you know where on the transfer box the breather is supposed to come from?