- Engine oil was brown and milky but it didn't appear to have broken down maybe because it's mobil 1.
Yeah, that's a result of the water in your crankcase. I'd do a thorough flush with some cheap oil and a good quality filter, run it for a bit, and then drain that out and put your oil of choice back in.
- Transfer case was milky as well.
Same issue, same fix. Shouldn't be a problem unless you've driven many miles with the water in it, which it doesn't sound like. Look up differential breather tubes and think about extending them, in order to prevent (or at least decrease the probability of) that happening in the future.
- haven't gotten to the Diffs yet but I'm assuming the will be as well.
Full flush, then a top up. - Battery was tested and they say its good, just needs a charge which is understandable because of all the attempts to start. this means the starting issue is something else.
I'm going to guess that the click you're hearing is the relay clicking. Can you hear the plunger going down when you try to start it? Does it sort of... make a whizzing sound when you try to crank it? See if you haven't blown any fuses. I haven't had any issues with my starter motor, so I can't tell you anything from personal experience, but since checking fuses is the easiest, it's where I'd start.
- oil filter was put on so tight, that it wouldn't come off. tried everything even removing the skid plate for more levergage and using an air filter wrench. Was hungry and tired, sore back, etc., and got impatient. Now it's damaged and leaking. From the looks of the oil, it has to come off and be replaced.
Stick a screwdriver in it and turn. It took me hours to get the filter off my dad's hundy. I made sure to get the new gasket nice and oiled up when I put it in, lol.