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Okay, so the problem was that when the seal was replaced the first time, the "bed" that it sits in was not completely clean and the first guy used too much sealant. Second time around the seal was correctly in place. No leak.

Thanks guys, I'll check those out....Let you know what it is when I find out.

My transfer case was leaking so I had front output shaft seal, rear output seal, input seal replaced. No leak while the jeep was parked but when I drove it the t-case fluid was flying everywhere under the jeep and collecting in the pan. Any advice on where it could be coming from? Thanks in...