98 ML320 Transfer case replacement
1) Drain the transfer case completely. This will keep you from wearing the fluid when you take the case down. Note the condition of the fluid you remove. Is it brown, burnt, metallic, etc.
2) Remove any electrical connectors attached to your transfer case.
3) Disconnect and remove the bolts from the front and rear drive shafts and remove both shafts.
4) if your 98 is like the 2002, you will not have to remove the cross member to remove the transfer case. So, look first to find out. If not, you can now remove all of the bolts around the front of the transfer case that affix it to the transmission. Then after youve removed all of the bolts, slide the T/case back off of the transmission until it comes off of the transmissions output shaft. If your not real strong, and your working on the ground without a jack, have a friend crawl underneath the truck and give you a hand with the removal. empty, the transfer case is maybe 100 pounds. Its not too heavy.
Note - If you are working on the ground, you might want to put the truck up on some drive up ramps prior to starting the job. This will give you a little extra space to work underneath the truck.
Installation is the reverse of removal, except, prior to "pinning" the T/case on the back of the transmission, apply a light bead of Permatex Ultra Black RTV around the surface that joins to the transmission. This will help prevent any leaks.
One last thing, when your done, and you refill the unit, remove the fill plug and fill the unit up until fluid starts to pour out of the fill hole. Its full at that point.
Not sure how much it will likely cost you to rebuild your transfer case because I dont know what blew up inside it, but it does have a viscous clutch inside the transfer case for the all wheel drive function, and i know they cost upwards of $600 for that part alone if its bad. Id say plan on spending between 1200-1800 bucks for the overhaul.
Good luck!
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