60 Series LandCruiser gearbox oil leak

Frank..., have had a problem like this before, and it turns out to be the gasket between halves of transfer case. Always leaks up the top, and runs down over the transmission. On later models, and think 60 is same, if you remove rear trannie mount, and lower tran on a jack, you can remove the rear of t/case, to replace the gasket. Of course, you need to remove the tail shaft too. From memory, you won't have to remove the rear output flange, after you take off the t'shaft.

Would suggest you also fit new O-rings on counter shaft. The only trouble you can have is with thrust washers on counter shaft, they have a small lug on one side that fits into slot on front and rear case. It's all a bit fiddly, but if you have access to hoist or ramp, it becomes much easier.

Get some gasket cement to stick the gasket to front half of t/case, there are two dowels there that help to centre the gasket. while you refit the rear half. A nylon or soft hammer helps to refit, once all gears etc are lined up, to put rear case into place.

Good luck, hooroo...

I had that problem on my old 60 series. Fixed it by putting some silastic into the bolt hole and putting the bolt back in. Not a textbook answer, and no guarantees but it was still leak free 100,000km later.

I have a '89 FJ62 and just fixed my gearbox with the same problem. The counter gear in the transfer box has an oil slinger fixed to the back of it that throws oil around the box. Trouble is, it lines up direcly with the join in the transfer case front and rear halves. After a while the gasket beaks down at the very top of the joint due to the minute amount of movement from the transfer case "twisting" under heavy torque loads.
I did not need to drop the gearbox mount - the transfer case separated quite easily, though getting it back was a little fiddly.
Keep a check on the bolts that hold the two halves of the transfer case together, I've heard that after a while they can loosen slightly, causing a leak.
Happy motoring :-)