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this is the fluid from the transfer case. it looked more red when it was draining. the reason i checked the fluid color is because the outside of the transfer case had brown leak stains and i suspected that a PO had put gear oil in the transfer case. it should have 2 quarts of Mercon ATF for my BW 1356 case. i dont remember the fluid smelling like gear oil, which i think i would have noticed, but the case's fill plug definately smelled like gear oil. hopefully now that i changed the fluid and added 2 quarts of ATF the case will be properly lubricated.
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