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So I been trying to figure out where this clunk is coming from. It sounds like it is centralized in the middle of the car but maybe a little towards the rear.

When ever I hit a decent road bumps I hear it and feel it. It sounds and feels like something heavy jiggling around. I went under the truck and started looking around when I notice a small leak where the rear axle connects to the tranny. I dont believe the X has actual u-joint, looks like the axle splines just slide right into the tranny.

Anyway, its leaking there. What is that seal? Is it a pinion seal? Thanks in advance.

(feel free to toss some idea around for that clunk)
 

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We do have U-joints, but they're up where the propellor shaft exits the transfer case. Can't help you with the clunk, but I can help you with the seal replacement, I just replaced my seal today, took me less than an hour. Here is an excellent write up by Rook that should help you out:

http://www.thenewx.org/forum/showthread.php?t=34769

The harderst part was getting the dust cover off, mostly because I was being a lazy arse and didn't put my truck up on some stands, so I didn't have much room to swing a hammer. I also didn't replace the dust boot, again, because I was being lazy...(and because I'm kinda poor. :) ).
 
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