M1078 milky oil/water in the transfer case question

Hey Guys,
How would my m1078 get water in the transfer case/trans?..
I know they share the same fluid. I think.
The oil looks like milk. The transmission/transfer case look brand new!
Maybe the oil cooler in the radiator went bad?..
need a new radiator ?
I think they had the same problem, replaced the trans and transfer case and BAM, same thing happened again.
Surplused it..
Kevin

I would guess the cooler, this is BEHIND the lower tank, behind the skid plate.

Thanks! Will check it out...Happens

73m819 said:

I would guess the cooler, this is BEHIND the lower tank, behind the skid plate.

Click to expand...

I would second that guess. There is a breather up on top, but the guy at Allison said you would have to basically directly spray water on it to get any into the transmission. Of course the breather could be missing and the truck was ran through some deep water. Never know...