Originally Posted by RubberDuck28
Just talked to my buddy with a 97 tj and he seems to think it could be a bearing inside the tcase and my leak is coming from the seal in it due to the bearing being shot
I had a leak there as well and when I called my SYE manufacturer they told me it was common for the splines of the output shaft to wick fluid. If nut on the output shaft isn't torqued down, that fluid can drip out. I pulled the rear drive shaft to find the retainer nut not torqued properly. When I torqued it the leak stopped.
I know this doesn't explain your noise, but it could explain the leak. Torque the nut and fill the case with fluid. See what happens then. Good Luck!