Nope, no transmission fluid up there, well, not on mine at least. Yes the t-case fluid level is ok. I opted for antiseize due to to pressures involved with the application. Plus, the antiseize stays put, even when it gets really hot. It wont melt and drip like the cheap grease I had on hand. Also, a little antiseize goes a long way! Will the output shaft ever see that kind of heat? Who knows. Probably not. Would it really hurt if a trace amount of it got into the fluid of the t-case? There is no valve body. I can tell you one thing though, it works like a fu**ing champ! As far as re-using the U-joint attachment straps and bolts, if you replaced everything that was designed as "one time use", you wouldn't ever have $ for the stuff that actually broke. Some things I can understand being 1 time use (head bolts, oil filters, etc...), but lets not pick the fly sh*t outta the pepper.