Leaking Transfer Case
 

I found out that the strange rattling (pennies in a jar) noise, is coming from my transfer case, which is leaking.

Has anyone else had this problem with their H3, who could help me figure out how to fix it? I don't want to take it to a mechanic and spend hundreds of dollars just to open it, but I will if I have no other option.

Thanks guys.

not good news, noise and leaks. search the forum for info. the service manual gives total details on step by step.
the noise may mean you need hard parts as well as seals, chain,bearings ??
its a big job but you can do it.

If you end up needing to replace the transfer case, you might want to get the "adventure" 4:1 crawl gear one. It is actually cheaper than the 2.x:1 - and is a drop in replacement. FYI my own thoughts on rear diffs - if my rear diff ever blows up I would get the e-locker version for $200 more. You can drop in a e-locker rear diff w/o any electrical connections and it will work just like the open diff. Then just need to wire it up later to have a locking rear diff.