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DatGuyC was right. Upon further investigation it was a rubber plug without threads in the hole. Also thanks Retiredwarhorses, that's exactly what I did. Cleaned the hole and plug, generous dab of RTV and popped it back in. Thanks so much guys! This site is a wealth of valuable knowledge! !

Hey guys, and ladies. I am putting in my freshly rebuilt transmission and noticed a weeping leak in my transfer case. TM's have been searched and I still don't know that it is. There is a plastic or some type of non metallic substance in the hole. Appears that it's possibly threaded. It's in the...