symptoms of xfer case seal leakage?

I have a 99 EB Explorer. At the front of the xfer case, there's ATF sprayed up on the underside of the body, and there's some that drips off the case itself. It doesn't leak on the ground when parked, but after I drive it I see the fluid sprayed up under. I pulled off the vent tube and I can blow into the xfer case and back into the transmission with the car off. So is this just a bad front seal in the xfer case, or is there something I'm missing? Why doesn't it leak when parked? Why does it spray up on the undercarriage?

The case has to be removed to replace the seal (BW4405) so I want to make sure before I spend the money. They say the case doesn't have to be split, but I can't see how else you could replace the seal because the snap ring to remove the front output shaft appears to be inside the case.

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pehoffer
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