My T-case just let go of a heap of oil, advice plz.

[Lugnutt]

I could use some advice on a transfer case/transmission problem that I experienced recently, thanks in advance for any help.

I've got a stock 1972 chevy 1/2 ton, short bed, 4x4 pick-up with the 350 auto trans and a 205 T-case. I had both of them rebuilt a year ago and then parked the truck and covered it with a truck cover.

This last month I found a guy who I wanted to drive the truck to for some bodywork and paint. It was a long drive, so with my wife following me in my jeep, we headed down the freeway. I only got about 20 miles when my wife called me to tell me there was smoke coming out from the bottom of my truck. When I pulled over I found the smoke coming from my oil soaked mufflers and oil leaking from the output shaft of my transfer case. I limped back home and when I parked it and turned the engine off, oil gushed out of the transfer case from the same rear output shaft.

I'm thinking that it must be a tranny/transfer case seal, but why would it gush out so badly when I shut the engine off? Do these transfer cases have breather vents that might be plugged? It was almost like it was being forced out under pressure.

The worst part is that the tranny shop that did the work last year (top rated guy, highly recommended), is now out of business. Another question is, once the seals are fixed, how do you get rid of all the cross contamination of the oils (auto trans fluid/90 wt gear oil)?

I hope some of you guys can advise me on the best thing to do and what to watch out for.

Thanks,