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Risk of running it?

Is it one with a trans cooling loop inside? Sometimes they get leaks- he hummer ones almost all Had problem that caused it to slowly pump trans fluid into transfer case to point of overfull.
Other than that the trans output seal.
 
There is np transmission output shaft seal, there is only 2 seals facing apart on the transfer case input shaft, and a gasket between the trans and tcase. There is always fluid there in a GM.
 
I very much replaced the following things between the transmission and tcase:
transmission output shaft
tcase input shaft (it sits in a bolt-on carrier which facilitated the work)
a paper gasket on the tx/tcase adapter
a large o-ring on the tx/tcase adapter

A local transmission shop explained (convinced?) me that indeed the adapter space fills with transmission fluid but it drains
back to the transmission when the car isn't running.

I'm not sure, but I may still have a leak into the tcase. It proved tricky and not "satisfying" to install the new seals so I am prepared to re-do them if necessary, but other problems are more pressing atm.
 
You have 2 seals or a double sided single seal on the transfer case input shaft to keep the fluids where they belong. A paper gasket between the 2 and theres an oring that seals the adapter housi g to the trans. Fluid stays in that space between the 2, thats normal. If your transfer case is filling with atf, the seals are bad at the transfer case input shaft, OR the bearing inside the transfer case input shaft is cracked letting fluid through.
 
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