Output shaft seal is leaking in the 98. It doesnt leave a drop in the drive but the underside of the cab is wet and the weep hole is wet. There is a little bit of play when I grab the output shaft, is this normal? I see there is an output bearing and pilot bearing. I dont want to replace the seal only to have to replace the bearing and seal soon after. Anybody with a with a 241 DLD wanna grab the output and see if its got a little wiggle?

Mine is doing the same thing, not as bad though, it's dhd. I checked my vent and that's fine not clogged, then I checked fluid level and it was overfilled because last time when I put fluid in I had *** end of the truck up in the air thinking it wasn't going to matter that much. So then I found the level spot and open the fill hole and probably drained about a half a quart. This seemed to help a little not dripping as often. In mine there is a bushing in tail housing where drive shaft slides in, if I grab ahold of drive shaft it is a little loose in the T case, last time I had driveshaft out I slipped a new bushing over the yoke and it seemed a little loose also so that's why I haven't changed it yet. Maybe I need a new yoke, hard to believe I only had 140k when it started to drip, which really happened right after I changed my rear end pinion seal and had driveshaft balanced. I've been checking fluid periodically and it seems to be good so I'm done messing with it. At least for now

There is a little bit of wiggle with my DLD 241.

If you decide to open the back of the Transfer case, you could look at one of these instead of the failure prone snap ring.:

 Sonnax makes an aftermarket one that is better than stock.

https://www.sonnax.com/parts/1697-transfer-case-split-ring-retainer

Or you could go with this:

 https://www.drivetrain.com/transfer-case-parts/transfer-case-saver