excesive fluid leak from transfer case

[whiskeynipple]

I know rovers leak but I am seeing excesive transfercase fluid.
the other day my cotter pin for the shift linkage rusted out as I was in bumper to bumper traffic - b/c I was basically crawling I put the tranny in 2nd gear - when I went to shift to 3rd - the shifter just moved back and forth - so I drove home at no more than 45mph @3250 rpms in 2nd gear (fixed it the next morning) when fixing it I noticed alot more transfercase fluid on the bottom of the transfer case then I have seen before (just changed tranny fluid last month)- looked like it was accumulating on the front driveshaft and spitting onto the bottom of the tranny also(its brown not red). I have been driving in more rush hour traffic lately also. - - also the vehicle preforms and runs just like before the shift linkage cotter pin rusted out

is this just the way it goes and I should keep the transfercase/tranny/diffs full - and check regularly-.......or
could I have damaged a seal when driving in 2nd - (shouldnt matter to the transfer case though?)

my other concern is fluid getting onto the exhust and catching fire

any thoughts?

also is 85w fluid ok (manual specs - 90w)

thanks
chris

1998 LR Disco1
stock - 65000 miles

 

[joey]

85w should be fine for winter use.

Mine tends to leak a little as well, I just check the level ever month to make sure it doesn't need any added. When I first bought it, it was a little low (I am being nice) I just added and I watch it. Haven't had to add too much though, I just think it wasn't maintained as well as I was told.