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Merlin, you're not familiar with this problem. This has nothing to do with a case of water intrusion. It's a case of Land Rover failing to apply spline grease to the splines during the assembly process. Thanks to the physics of electrolytic migration, corrosion ensues. Poor workmanship at the assembly line.

Davrodiver - please file a complaint on the NHTSA website. The more that experience this failure report properly, the more likely that LR will have to acknowledge it and address it.

 

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Discussion Starter #22
I have a complete transfer case ready to go in. As for the wading, my wife definitely has NOT, and the vehicle looks too nice inside and out to have been a rock crawler. If the wife gets tired of it, I might just have to take it off road...
 

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Discussion Starter #23 (Edited)
NHTSA report has been sent. Here is a copy of my report. I plagiarized part of your explanation, 03rangiemark. Thank you, Sir!

My wife came to a complete stop at a stop sign. When she tried to pull off, the vehicle refused to move. Two good Samaritans pushed her into a parking lot. Had this happened on the Interstate, it could have caused an accident. Inspection a few days later revealed rusted and stripped splines on the transmission output shaft and transfer case mating part. During my research, i found that this is a fairly common problem caused by electrolytic migration due to a lack of grease on the mating parts during assembly. Please note the absolutely clean areas of the transmission and transfer case apart from the rust dislodged during disassembly.

EDIT: I also attached the pictures with the rust encrusted shaft and mating part.
 

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I know you like to do your own wrenching, I always have too. But I did shop around for the most time & cost efficient option, and ended up with (believe it or not) a local Aamco as the result. I've never been a fan or even believer of Aamco or any transmission shop, but the one in Longwood Florida left me happily impressed. It cost me $6000 to rebuild both the transmission & transfer case, but I'm sure that they're both in better shape than when they left the Land Rover assembly line.
And the owner, manager and crew that I spoke with at that particular Aamco were great to work with. They earned my trust.
If you'd rather get that back on the road asap and don't have as much time as you'd like, I hope you're able to find a shop as good as the one I was fortunate enough to find.
I'm still trying to find the time to drop the tranny & transfer case of my '03! Luckily, that one can wait.
Best of luck!
 
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