2002 Cadillac Escalade • V8 AWD Automatic • 150,000 miles

2 questions; Both on a cadillac escalade transfer case with full time all wheel drive; I drained & refilled it with the blue ''auto track II'' gm stuff that my gmc truck takes, then after saw the escalades owners manual said to use "Dex III auto trany fld". Is there any harm in using the auto-track stuff?
2nd; where the rear driveshaft goes into the transfer case I can move it side to side a 1/4", where on my gmc 4x4 there is no movement at all. Should there be any play in the escalade?
signed "scared I need a new transfer case" haha
December 10, 2010.

What did you drain from the transfer case? As far as the play, that sounds a little excessive. Is there any noise from it?

Possibly, but more then that I cant get it to stop pushing fluid out the rear seal even with a brand new seal and sanded yoke. Just bought a new bushing for inside the back of the transfer case and was told being full time all wheel drive that I need trany fld or i'll burn up the clutches that are inside it. Any knowledge on changing that bushing?

Dec 10, 2010.
The bushing, if bad, will cause a new seal to leak and the play you have. I have attached a picture of both the seal and bushing removal. You will need a special tool for the bushing. Let me know if it helps.