AWD Transfer case overfull

[BLKLTDV8]

I put my wifes 00 Mounty 5.0 up on a lift yesterday to change the tires and figured I'd change out the transfer case fluid also. We bought this vehicle a month ago with 108k miles on it. The owner said it was always well maintained, but after finding the original spark plugs in it, I have my doubts. Anyway, when I pulled the top drain plug out (before pulling the bottom) and at least a quart of fluid came out of the fill hole. The fluid was fairly dark and in definite need of a change. I found it odd that there was that much extra fluid in the case. Is there a seal between the transfer case and trans that could be bad and adding fluid to the transfer case? After I filled the transfer case with Dexron V, I checked the trans level and it was fine-maybe a little on the high side. Should I be worried about this? I will be changing the trans fluid in the near future and at that point I'll pull that top plug again and see if the level stayed the same. Could it have been that the transfer case was overfilled at the factory?

 

[IZwack]

Overfilling is no issue but yeah 1 quart is a BIT much. I guess if the seal on the front input of the case is done, then yes it could be letting fluid in, as well as letting fluid out -- but I have yet to hear that seal go on this forum. Likely, the previous owner filled the transfer case with the front nosed way down -- which is kind of strange.