I picked up a used tcase from a smashed truck and pulled it apart to see what type of shape it was in. The following pictures are what I found.transfer case 004.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106259&stc=1&d=1280595377) transfer case 005.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106260&stc=1&d=1280595565) transfer case 006.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106261&stc=1&d=1280595565)
There was some stains on a few pieces. Not sure what that would be from.
Also there is what looks likes a bunch of cracks in the case on the top side. it looks like a bunch of little hair line fractures. transfer case 007.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106262&stc=1&d=1280595776)transfer case 008.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106263&stc=1&d=1280595776)transfer case 009.jpg (http://www.dieselplace.com/forum/attachment.php?attachmentid=106264&stc=1&d=1280595776)
All the bearings seem fine but Im a little worried that it has been cooked in the past. I have purchased a seal kit and a pump rub kit. But now I would like to know if you guys out there think this T-case is in need of a little more work than a seal kit. Is there anything I should be looking for?

I was just wondering if the case has been taken apart before. Maybe a pump rub fix. Did the clip that the pump lobes ride on show any wear? I don't know what causes the spider lines. Were the tolerances tight?

Thanks for your reply. Yes it looked like it had been taken apart before, the blots on the case were all marked up with wrench marks. There is a tiny bit of ware from the pump lobes. As for the tolerances, what are you referring to? Do you know how to check if the chain is stretched? Thank you.

Iff you take FINE sandpaper, and sand what appears to be cracks, you may find that to be casting lines.

Also like Div4gold said, look for the pump rub, and install a prevention since you have it apart.

Those marks inside the case half are normal see hundreds of them like that at work. You need a new chain to check to see if your chain has stretched. Points on your clutch hub look good.

Thanks Dmax7.1 thats a relief to hear. Also how does a guy get the planetary gear out and how do you get the seals and shafts out of the front of the T-case?
Tolliwaker I have one of those brass looking pump rub fixing plates. It will get installed when I put the case back together.
I'm now thinking about buying a bearing kit for this bad boy while I got it all apart but I would have to take it to a shop to get the some of the bearings removed. Not sure if its worth it yet.
Thanks for the help

You need to remove the input seal and front output seal and there is a snap ring holding the input gear and front output shaft. Then inside the case half there is a snap ring holding the bearings inside the case half, i bet your input bearing snap groove will be loose common problem on 261-263 transfer cases and also check your rear output bearing snap ring groove these get wore out and sloppy also.

Is there something holding the seals in place? I can pry the front output shaft seal out about 3/8" and then it seems to be attached to the shat. Or do i just have pry harder?

Ok here's where I'm at. I'm not "smrt" enough to get the rest of this thing apart. Please see the pics and let me know if you have any tips for getting the rest of this thing apart.

I'm about to post a thread with my teardown of a NP263. If I recall, just pull those seals on the exterior of the case where the shafts are. They're a B, but blunt force/prying should get the job done. Underneath the seals, there's snap rings that will release the remnants of the parts in your case.

Ok sweet, I'll be waiting. Please let me know when you have posted.

I got the seals out and yes just you guys described there was a another snap ring to deal with. I ended up having to screw some deck screws into the seals and pull them out that way. So I got all the bearings and seals changed and installed my pump rub clip.
After applying the RTV and putting the two halves together I had a problem getting the last snap ring into place. It is really tight fit between the bearing and case, when it is in place it puts pressure on the bearing it clips into. I was wondering if this was a result of the installation of the pump rub clip? Has anyone installed the brass looking clip and had this problem? Or did I F up my reassembly?
Thanks in advance

If you stand the case up on the input end, it will ease the bearing going into the snap ring, you just cannot install the case half bolts until you have the bearing in the snap ring. also use a screw driver in the speed sensor hole to lift the bearing into the snap ring when you have it spread open.

I do not know if this is what happened, just throwing it out.