02 4x4 transfer case questions...

fgtex

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So I finally got around to changing the front and rear diff fluids, putting on the '08 read diff cover and changing the fluid in the transfer case! No problems with the diff's.

Question #1
4 quarts of ATF came out of the transfer case!! How is that possible? I added 2 quarts to refill, and it was just at the bottom of the fill hole. According to the pics in the Haynes manual and this website, I am in the right place. So how did the previous owner get 4 qts in there? Or is the tranny some how leaking into the transfer case?

Question #2
How much play should be in the driveshaft between the transfer case and the front diff? There is enough that I can turn the driveshaft enough that I can see the u-joints on the front axles move about a half an inch.

I have a 2002 F350 CC LB 4x4 Auto Trans ESOF.
 

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