Rubicon express SYE oil seal leak

I'll try and explain as best as i can. I just installed the RE SYE 1801 on my 91 (NP 242). I cant figure out why the oil seal, that fits inside the bearing seal flange (red part) is leaking fluid. Everything is installed except my driveshaft so i chalked the wheels, started it up and put it into drive to see if everything worked properly. Thats when i noticed the leak. :gonnablow
I also noticed that as the silver output flange spins, the oil seal spins too. Is this supposed to happen?

I think with the older transfer cases, the driveshaft creates a seal with the tailshaft. When you pull the DS out, the fluid leaks out.

mine did the same thing even came on the freeway talk about a mess,what i did to cure this is to take the seal out and put rtv around it and put it back in have not hade a problem since

nturboy12 said:

mine did the same thing even came on the freeway talk about a mess,what i did to cure this is to take the seal out and put rtv around it and put it back in have not hade a problem since

Click to expand...

Just tryed your suggestion and it worked! Thanks for the advise. I shouldve thought of that. Thing was buggin me all day.

sunburned said:

I think with the older transfer cases, the driveshaft creates a seal with the tailshaft. When you pull the DS out, the fluid leaks out.

Click to expand...

But he has a slip yoke eliminator, totally different here.