Okay. Swapped the t-case out and finally got my truck back with the new motor and all the goodies. Figured out that my stuck key problem was the CDL Lever not quite engaging enough to let the key out. IOW, I would have it locked, then push right to unlock, it would feel like it went all the way, but key wouldn't come out. Push a little more right, jiggle etc. and then it would click a little more and wa la. Key comes out.

Drive across town to get the new SSR's in. Lock and unlock the cdl with motor running and motor stopped to test the ABS/TC lights situation and all worked well. This was done at stop lights or rolling real slow. Got the tires installed and they look fantastic!! Excited as hell.

On the commute home (about 35 miles) I could hear a couple of distinct whines. One was a low rumble that was obviously from the tires (set to 50 psi). The other was what I thought was also the tires, but it was much higher pitched like an airplane motor or something. I wondered if it was the 4.11 gears.

I get home, park and try to take the key out and it won't come out. I've driven all the way home in high and unlocked with the CDL light off. I'm thinking oh great. Damn key problem. I push the lever right and it gives a bit and the key comes out. I get out and smell gear oil. Fuck... My heart dropped as I looked under the truck. I didn't see any oil dripping, so I smelled the tires, figuring they were new and it might be them. There was a slight burnt rubber smell from them but I didn't think that was it.

Got a flashlight and crawled back under for a closer look. Now see that there is a lot of oil coming from the top of the t-case and running down the bottom at the front. The cross bar was soaked. Obviously it was hitting the exhaust pipe which was what I smelt. It's not coming from the flange, and doesn't look like it's coming from the bottom cover although that was soaked too.

I suppose this could have been an existing leak from when it was on my old truck but it seems like a lot of oil. Could I have driven all the way home with the truck half unlocked? I'm pretty concerned that I screwed up the transfer case. At the very least I've got to fix the leak but if the light was off on the dash is it possible the lever issue caused the problem and caused more serious damage?

This is a 2002 D2 with a T-Case from my old 2000 D2.

Gee, don't you think that you should at least consider taking it back to the guy who did the work and ask him to fix it?

Anything is possible...

Will you please download the rave cd and learn how to read it...the cdl has nothing to do with key release, that's tied to the gear shifter. This should be really obvious because the truck started it's life without a cdl shifter and putting the handle in should have absolutely no effect over the key release. Check for a short in the wiring harness for the gear shifter.
Take the truck back to the shop and have them fix the leak. You did service the t-case before you put it in Right? Or did you just take it off the parts truck and bolt it up without checking anything on it like the seals and gaskets for leaks...

Well yeah. Called him this morning on cell. He's going to look at it first thing Monday morning. Looks like I might have a power steering leak too. He wanted to keep it for a day and drive it around a bit and check for leaks himself, but I wanted ti back. :) I'm not worried that he won't fix it, I was just a little freaked when I got home and couldn't reach him. Was hoping someone would tell me it was impossible for the t-case to be half locked and it was probably just a leak. Anyway, it will work out. No codes, he cleaned up the engine bay and every hose is polished and minty compared to before. I'm really happy with his work (as far as I can tell) and know he won't burn me. He sure seems anxious to get it in and fix it ASAP which is good. The t-case has been sitting in my heated garage for 2 years so if there's something wrong with it, it's probably the t-case. I haven't had my truck since late September though so I was crossing my fingers that with everything done up, I could just enjoy the truck again. Will get it all worked out next week and once it's bullet proof, I'll get it out to test everything and the tires too.