Here is the pic of the stem next to the transmission dipstick which is leaking. It also seems to be leaking transmission fluid underneath that I am thinking is coming from the pan with the filter inside. But why would it leak from up above next to the dipstick like that? Anybody? [IMG][/IMG]

 

That is a vent tube. No fluid should be coming out that there tube. I bet ya got some tubes out of place or ya got a blocked drain tube.

 

Sounds like a classic T-case input seal failure... When they fail the transfer case will slowly fill with transmission fluid, overfilling it to the point of pushing it out that vent tube.

Pull the top (fill) plug on the back of the transfer case. If fluid pours out you have found the problem. Make sure you have a drain pan ready...