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Howdy! It is very common for the seal between the two boxes to have a minor leak that allows the transfer case to "pump the oil into the transmission. The home made plumbing allows the excess to drain back into the transfer case. If you have it draining from the transmission into the transfer case, this setup will not help. You will have to pull the driveline and reseal it. John
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76 FJ55, Safari Grade. 350 SBC, Lockrightx2, SO, SR, PS, York on board, 35" Krawlers, and way too much junk in the trunk!!!! 
85 Toyota mini truck  for chase/support!
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