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I recently started driving my partially finished project vehicle. I have a 1990 Jeep YJ with a 5.3, 4L60E, and 241c. I have my t case off replacing seals and I noticed that it looks like the output on my transmission is leaking(pic related). I believe this was caused when I accidentally overfilled it. Ive not some research and havent got a clear answer. I know the shaft rides on a bushing and I would assume there is a seal on the other side of that bushing, but Im not 100% sure. Any ideas on the cause of this leak or the amount of work required to fix it?
No there is no seal on the other side of the case bushing.
If there was a seal there... oil could not enter the bushing to lubricate it.
At least from the photos you posted... everything looks fine.
-There is a big round black and orange "square-cut" seal that goes between the transmission case and the adapter housing.
-Then there is a paper gasket with 6 bolts holes in it, that goes between the adapter housing and the transfer-case.
-Last, there is a seal on the transfer-case where the transmission output-shaft enters the transfer-case input-splines.
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4l60e 
