Its not that common really, i have seen maybe 1 or 2 transfer cases leaking on a w166 in the past 2 years or so. The ones i found leaking where leaking from the output shaft seal.

__________________
1985 300TD Turbo Euro-wagon
1979 280CE 225,200 miles
1985 300D Turbo 264,000 miles
1976 240D 190,000 miles
1979 300TD 220,000

GONE but not forgotten
1976 300D 195,300 miles
1983 300D Turbo 175,000 miles

http://i42.photobucket.com/albums/e3...e485-1-2-1.jpg