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I'm beginning to be curious then. Sounds like we are in the same place. I have this HOLE in the top of the tcase around where the tailhousing bolts to the main case. Hole looks to be about 1/4"ish in diameter.
where does it go from there is my question? I replaced my 208 with a 241 couple weeks ago and the 208 had a 2" long hose with the diff. type breather on the end. So i just threw that on the 241. I did notice though when i pulled the 241 out of the junkyard it was connected to a steel line that went somewhere on the burban. Well after drivng a bit i had a huge mess under my truck. At first i thought it was my front seal but then i looked up and found it was coming out of that breather. well obvious soulution is to get more hose and run it somewhere( but where) without looking like a spagehtti mess? also why is it coming out of the case anyway when the 208 didnt not. maybe cause of the oiler in the 241?