Just had to have my transfer case replaced at 43K miles. Just squeaked by under warranty. I really have no idea why it failed and can't really find any strong evidence on the 'net that points to systemic issues. However, I was speaking to the salesman that sold me the car about this and, as it turns out, he also has an F25 and he also blew his transfer case. His theory is puddles. Puddles entered at high speed can cause enough of a rotational difference in the transfer case to cause it to fail over time, according to him. Does anyone out there think this is a viable cause for failure?