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Once everything is coated with leaking oil and accumulated dirt, a small leak is almost impossible to find. Here is an old trick that works well with elusive oil leaks.
Subject: Re: DiRT: Leaky T Case
From: "Stevan Gajic" <email@example.com>
> Have any of you had a terminally leaky transfer case? I'm getting
> little tired of leaving oil slicks where ever I park. It leaks with the
> engine off and unless ATF defies the laws of gravity...
Try this to track down the source of the leak, then fixing it would be easier. Crawl under there and clean up any excess ATF, spray the t-case with athlete's foot powder in the spray can. Leave it over night. The ATF will leave a clearly visible trail through the foot powder and you should be able to trace it back to the source. After that just hose off the t-case and all the foot powder rinses right off. Now, fix that leak.
Last Update: March 22, 1999