Guys, I am trying to remove the front output housing to fix the seal. Something is holding it by the shaft, internally it feels like. I can pull it out about 1/4" and it wants to spring back. Help! How do I get the thing off? The box is in high range, diff unlocked.

it is not necessary to remove output housing to renew the oil seal, but if you must. You should remove the range change detent spring and ball by removing the Allen screw on RHS of transfercase behind the park brake handle bracket after removing said bracket. the front housing can then be withdrawn complete with centre diff and high/low gears. Or if you remove range change selector box from top of front output housing you can tap selector shaft backwards with a drift whilst pulling output housing away from t/case.
Bill.

Thank Bill. Its the RTV seal between the front output housing and the main case that is leaking.

Still can't get it off after removing range change detent spring and ball. Could it be the interlock solenoid holding it in?

Yup, interlock solenoid. Switch key to on position and it clicked open after a minute or so. No room to pull out the housing so will have to do gasket with it pulled out some.