I am really having a major issue with getting a new transfer case installed and working in our 98 V70 AWD. As mentioned in my thread below (the original went out on us while on vacation), the car is currently 4 hours away from my home in a shop in Sterling, Colorado and they cannot sort this out.

The original t-case had 121,000 on it and blew while we were driving cross-country. Since then they have put 2 replacements in and both have demonstrated the exact same problem. They immediately heat up, leak the lube fluid from the seal which then hits the cat converter, produces massive smoke and eventually a fire.

We've tried 2 replacement units, a brand new OEM seal, put four brand new identical tires on, been careful to fill transfer case with Volvo OEM fluid - and its STILL leaking from the seal. HELLLLP!!

The guys working on it are out of options and ideas, I'm out a few thousand dollars, and my car is 200 miles from where we need it every day. Any ideas what could be causing these t-cases to keep getting so doggone hot?

 

Binding in the drive shaft or rear diff causing excessive stress on the Angle gear?