Ok guys... I got the seal changed and all is well, no leaking as of yet. Had to buy the seal from Jeep directly for something like 25$, fucking rip off but what can ya do. Do not get the seals from auto parts stores, they are the wrong seal. I had it torn down and ready to go late at night in my apartment parking lot just to find out I had the wrong damn seal, talk about being pissed.
I had to rent a claw puller from advanced auto for $70 I think. You get all your money back when you return it so its a good deal. Also got 3 quarts of ATF +4 to refill the transfer case. I was back on the road for about 50 bucks. Alls well that ends well I suppose.
First thing you have to do is remove the 8, 8mm bolts holding the DS to the yolk. You'll have to get an elbow/rotating socket of some sort to get in there. You can roll the Jeep to rotate the DS/Yolk to get at the hard to reach ones on top.
Next, set the drive shaft aside and you will see the nut holding the yolk to the output shaft. I believe this is a 30mm nut. All I had was a 33mm socket and I made it work. Its not torqued down much at all so it worked fine for taking it off and putting it back on.
Once you have that nut removed you will have to get some kind of puller to remove the yolk from the shaft. I rented a claw puller from advanced for about 70$. You get your money back when you return it so its virtually free.
After you have the yolk pulled you should see your bad seal. Its a metal outer seal with a rubber inlay that seals on the back side of the yolk. Im really not sure how mine went back, it actually looked good before I removed it from the case but I guess it just has to be perfect to work right. Only time will tell. Hopefully I dont have a bigger issue.
There may be a way to pull the seal without removing the cover. I found it easier to just pull the cover and I dont think it would be very easy to press the new seal in without removing it. NTM if its the RTV on the back of the cover that needs replacing then you can knock both out at once. Its held on by 6 10mm bolts. They are torqued down a pretty good bit so dont try and use a cheap socket to pull it. I broke one on my first attempt.
Once you have the cover pulled you can beat the old seal out and clean the cover up. In order to press the new seal in I took the yolk, seal, and cover and put them together. Then I used a dead blow (rubber mallet) hammer and beat the cover onto the seal using the yolk to keep it even. You have to be careful not to break the cover but you shouldnt have to hit it very hard. Once the seal is pressed in there should be about a 1/16" lip sticking out of the front of the cover. A little more or less wont hurt Im sure, that seal presses in pretty damn tight.
Now you are halfway through. All you need to do is replace the RTV as I have shown and reverse the removal steps. Fill your Tcase with 2.1 quarts of ATF +3 or +4 and you should be good to go. Check the seal for leaks after your first time running it around the block and pray to the Jeep gods that you fixed the problem correctly. I bid you adieu... Good luck in your endeavors. If you have any questions, feel free to ask.