LMy brother had an unfortunate incident in his '93 Pathy (auto tranny) a few
months ago in which he managed to submerge the front half of his truck in a
river. Yeah, I know. After replacing the ECM, starter, alternator, and a
whole host of fluids (PS, tranny, diffs, oil, etc..) the truck was running
fairly well (aside from a dead gauge cluster) until yesterday morning. On
the way to my place the truck started to slow down and the engive would
still rev until he wasn't moving at all. He climbed out and found milky oil
coming out of the rear seal on his t-case. Yep, that's one fluid he missed.
2wd or 4wd, no power to the wheels.

So, we dragged it back to my place with my lil' Jimmy and started looking
for a transfer case. I'm wondering though, are there any clutches or
anything in the Nissan transfer case that would allow the rear end to slip?
I'm worried that it's actually the transmission that's gone and he just
happened to find the t-case problem at the same time. He did have to flush a
good twenty-five litres of ATF through the tranny to get the water out. How
do we diagnose which unit has the problem? And as a side note, does the
Nissan t-case take gear oil, ATF, or something else?

Jimmy isn't supposed to be the reliable truck... At least he learned a
valuable lesson. Imports don't float.