Transfer case, axle shims, shocks

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Transfer case was swapped from 246 to 241. The rear output seal continues to drip fluid. What can be done? I thought rotating the rear axle upwards so that under load the axle won't twist downward and "pull" the driveshaft and transfer case downward too and cause the seal to fail. Fwiw, the seal is brand new.

I'm replacing all 4 shocks as well.

Here's pics to show angles.
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98_k1500

strange noises are normal
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Not sure if one of these transfer cases have a "cup" in them (not sure what its called). Is it leaking down the splines and out the back of the yoke or is it the seal itself?
 

98_k1500

strange noises are normal
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Unless your rear transfer case bearing has some slop in it or something, all i can figure is that the new seal is bad, or someone messed it up installing it.

Edit: Does the driveshaft yoke have a hole in the bottom of the splines facing the u-joint?
 

steampunk1375

I'm Awesome
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Looks too short to me in the pics. I've seen seals leak because of this, since the yokes not supported properly it'll have some slop as it turns.
 

TylerZ281500

Yukon Ridin High
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theres alot i see wrong, first off angling the axle up is not proper but yes youll pull less slip yoke out, essentially your tcase and pinion should be parralel, secondly pull your drivehsaft and look at your slip yoke, its out waaaay to far which cause have cause a vibration issue thus causing bearing or bushing wear which may explain your leak.

you need to get your driveshaft lengthened for sure. these truck have alot of axle wrap but pointing your pinion isnt the way to go about eliminating it
 
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