It went into limp home mode. I took it to the dealer and they said it was a valve assembly in the transmission that needs replacing ($1000). They also said that the transfer case was "weeping" and should be replaced ($2500).

Has anyone ever heard of a "weeping" transfer case? They said that there is no way to service this and add more fluid.

I am the original owner with 78K mi. Tranny most recently serviced at 72Kmi.