Transfer Case: Installation

Clean gasket surfaces and install NEW transfer case-to-extension housing gasket. To complete installation, reverse removal procedure. Tighten transfer case-to-extension housing bolts in sequence. See Fig 1 .
Ensure White marking on vent hose is positioned in notch on shifter (upper end of tube should be 3/4" above top of shifter and just below floor pan). When installing shift lever assembly, ensure large bolt is tightened first, then small bolt.
Lubricate vehicle speed sensor"O" ring with ATF. Tighten bolts to specifications. See TORQUE SPECIFICATIONS table. Fill transfer case to bottom of filler hole with Mercon ATF (XT-2-QDX or DDX).

Fig 1: Transfer Case-To-Extension Housing Tightening Sequence

Courtesy of FORD MOTOR CO.