OK i have a leak on the back of my transfer case somwhere, because fluid is leaking out and getting on the driveshaft and spraying on the bottom of the truck the whole width of the truck. So i was told that it was the transfer case rear output shaft oil seal, so i went ahead and bought a new seal from Napa. I go to change it out, and my grandpa (retired mechanic) takes a look, and realizes theres some play in the driveshaft, both turning and moving up and down a little bit. So he said there is a bushing or bearing worn out inside, as well as i will probably need to replace two seals (as shown in diagram). It appears that the seal i got was the one circled in red, although the piece there appears to be clean, so it leads me to think that the seal that is leaking is the one circled in blue, but why is there an oil seal there, doesnt make sense to me? And what is it called so i can buy it? Am i just going to need to drop the driveshaft, pull off the extension housing, and pull out the shaft and replace a bearing, then put it all back together, replacing those two seals? Is it that easy?




EDIT:
Here is a pic of the rear output shaft diagram (mine is W/O ADD):

 

I would assume the outer one is more of a dust seal to keep crap out but still acts as a secondary seal to back up the primary. assumption. never dug into doing that job so cant advise you on that.

 

The seals aren't that bad to change. If your going into it though to replace a bearing I'd go ahead and do them all. and the seals at the same time especially if your dropping the case.

 

can that rear transfer case bearing be replaced successfully without removing the transfer case on an 85 Toy 5 speed 4x4 ?

 

I can't see your pics, but..

Don't jump to conclusions that you have a bad bearing.
The companion flanges often loosen over time and give the play you speak of.
Often times, just degreasing the splines, applying lock-tite and retorqueing the flange nut; will eliminate the play.