[bmwfizix]

I replaced the o-ring on the actuator and that stopped the leak (at least for now). Very difficult job – requires removing the entire transfer case and splitting it open to release the actuator which is held by two c-clips. The job required about 22-hours in labor working alone, aside from my father helping with the lowering of the transfer case from the vehicle and helping to split the cases. I was able to do this without removing the transmission (as the manual recommends) by simply tilting the entire transmission/transfer unit until I could remove all of the bolts connecting the transfer to the transmission. This only saves a small bit of time, but the transmission looked so heavy that I felt more comfortable leaving on the vehicle. The transfer case work only took about 3 hours, so the bulk of the time is pulling it down and putting it back up.