Highmarker03
Active VIP Member
Had the same problem on mine. Took it to a good transmission shop. Pulled t-case, welded hole, and instaled the spacer plate to correct the rub. All for about $400 US. Has been about 25,000 miles since and not a single problem. I caught the leak well before I ran the case dry though. Found oil all over the tailgate and rear bumper. Then looked underneath and the rear axle was covered. Found a hole the size of a pencil tip in the t-case. Truck had about 80,000 miles on it when it happened. You definatly don't need a whole new t-case! Think the shop is trying to give you the shaft. As long as you didn't run it completely dry.