hello. I have a 2002 Escalade with about 115K miles on it and recently noticed than the blue trans fluid was leaking near the rear drive shaft area. I have replaced the seal on the rear of the transfer case where the rear drive shaft comes out TWICE, and it still leaked. I then ordered a new slip yoke assembly thinking that perhaps the slip yoke shaft was worn (and it was a bit) however even with a new slip yoke the darn thing is still leaking. I then discovered that if I try to move the drive shaft assembly while it is installed the shaft does move up and down slightly in the transfer case. it will not move left or right but will move up and down. I do believe this is the problem that is causing the fluid leak and that perhaps there is a worn bearing around the spline shaft inside the transfer case. ??

My question: has anyone expereinced this same problem? If so what is the fix, and the cost involved.

I searched this forum many times using the advanced search and could not find anything on this.

Any help is appreciated.

Thanks, LarryD