So my manual showed up from quad4x4 yesterday. It seems detailed enough that Im confident that I can pull this job off. Upon looking closer and with the book in hand, it does look as if the third gear syncros are hosed as well as the third gear syncro teeth (meaning a whole new third gear) and the 3-4 syncro ring. The manual says that the two most common causes for 3-4 syncro failure are; a. wrong or dirty fluid or b. excessive mainshaft endplay. I was able to check endplay without completely disasembling the unit and it seems within the specs.
After thinking about what SunSoaked said about the condition of his fluid, the gear oil smell that I first noticed, the color of the fluid after I drained it and all the black "silt" in the bottom of the trans, I'm inclined to think that it was just the wrong fluid used in the past sometime. Which is the best bad news I could get right now.
At the moment, I'm collecting the tools needed to do the dissasembly / reassembly and may even make a couple of the puller collets as I really have to try to not spend alot of $ where I don't need to. I stopped reading the required special tool list when I hit about 700 bucks. So far I picked up a floor press off of C.L. today for 80$ and ordered a bearing splitter / puller set which started out at 140 + tax and ended up at 90 (with some price matching) including tax and shipping. I figure I can use the stuff again when it comes time to do axle bearings and seals on the wifes Yukon.
Untill its completely apart, Im really not going to know the full extent of the damage but at first look, I may be into this for around 275 + tools if Im lucky. Im still fairly p.o.'d at the guy who sold it to me for not being honest but I figure I've got to let that go. At least I'm learning more about something that I'd never otherwise have a chance to learn about.
I tried taking pics of the syncros but the camera couldn't focus in on the small teeth that are messed up. I'll try again while dissasembling and may have a better shot. I would like to post pics of the tools that work and hopefully save some money over the "specialty tools" in hopes of saving someone else a couple of bucks too.