sethro, I have found 4 different things that cause the "ratcheting" in the gears.
1) Broken shift fork, usually won't move at all or will get stuck in low range.
2) Worn case half, the holes in the case that hold the shaft the the fork slides on wear and allow the fork to "rock" back out of high range.
3) Worn shifter cam gear, allows the fork to climb the shaft and get out of high range.
4) Worn "High Low" gear.
The case is not that hard to repair, I have been into two different ones. Mine broke the fork in road construction on I44, the only way I could get out of the way for others was to play between H,L,H,L untill I got it stuck in low.
The second I reparied had a worn case hole, cost $30 at the machine shop to bore and bush the hole, if you have that situation be sure not to get the hole too tight will make it had to put back together.
The seal you have leaking is National # 710403 cost $14. Fork is $23, cam gear is $21, H/L gear is $41.
Hope I helped!