The Merchant Automotive 10001 Transfer Case Pump Upgrade Kit with Fluid for your 01-07 GM 6.6L Duramax is the best upgrade you can make to your GM transfer case (model 136, 146, 246, 261, 261HD, 263HD, 263XHD, 261XHD) to prevent the ever increasing problem of pump rub. 

What is pump rub?
The GM transfer cases use a gear pump inside the case that is driven off the mainshaft. The pump forces oil to the planetary as well as the drive sprocket sleeve. Because the pump is driven by the shaft, the housing of the pump must 'float' in the rear housing. There are 5 tabs around the housing that fit into spots in the rear housing to position the pump. Over time, the pump can start to wear on the rear housing. GM installed a spring steel clip in the housing intended to prevent wear but the clip can break and render useless

Being that the pump housing is aluminum and is a harder material then the magnesium rear housing, it can wear a hole in the rear housing and cause a very small leak. This leak is high enough in the case that it typically will not leak when vehicle is not moving and therefore not leaving any drops on the ground. Typically the condition is not found until there is transfer case damage from running the case out of fluid.With installation of this kit, you will have a LIMITED LIFETIME WARRANTY against pump rub.

Included Components:

• Merchant Automotive billet transfer case pump housing
• Transfer case adapter gasket at trans
• RTV Silicone
• Blue Threadlock
• Transfer Case Fluid
  
• Merchant Automotive sticker
  

If you already have a hole in your case, its recommended to install a new rear housing for a proper repair.  Lifetime warranty will only apply to installations with a new rear housing.