I have an 03 gmc 2500hd duramax lb7 with the np 261xhdgm transfercase. I found the rear output bearing rubbed into the casing and the snap ring around it had also rubbed a hole in the casing. Does anyone know of any repair for this, or am i gonna have to bite the bullet and purchase the whole thing? Brand new from gm is in the neighborhood of $2500.00. Any help would greatly be appreciated. The truck only has 74,000+ miles on it. Is this common?:o:

Search "pump Rub" you can find everything you need to know

i just split my case and found the same thing, mine is due to the fluid cooking off and lack of lubrication. trying to track down the parts now should be able to replace the bearing and bushing, but gm just came off strike, so i hope we can get the part asap i will post any info i find on this thread.

Don't buy it from GM. Buy it from Eric at Merchant Automotive in the Vendors list. I just got one from him last week. Very good service. It has the upgrade to keep it from happening again.

Yes, GM told me the parts are available. But, getting them right now they couldn't say how long it would take. Would it be wise to replace the tail shaft housing as well? If so, what would interchange? I have the edge juice w/ attitude and stock exhaust with the muffler cut out. I tow quite often up to 8,000lbs and want it to hold up. Thanks all for your input.

Yes, GM told me the parts are available. But, getting them right now they couldn't say how long it would take. Would it be wise to replace the tail shaft housing as well? If so, what would interchange? I have the edge juice w/ attitude and stock exhaust with the muffler cut out. I tow quite often up to 8,000lbs and want it to hold up. Thanks all for your input.
Check with Merchant Automotive, I bet he has the parts you need in stock and for fraction of what the dealer want, 616-399-7169