The passenger side of the front axle housing seems to be leaking out of the seam where it meets the differential housing.

Anyone know if this is normal or is it a sign of something going wrong.

 

No, its not normal for oil to be leaking out of anywhere on the axle assy. Needless to say, if its leaking out where the axle tube meets the pumpkin then you've got real problems. Take it to the dealer first thing, unless you have visibly abused the Jeep they will probably replace the entire axle assy.

 

Its very common for a straight axle housing to seep or show a damp area, whether its the cover or a tube at the housing. Most axle housing covers will seep at one point or another, reseal them and they will develop another seepage down the road. the axle tubes are pressed in and button welded to keep them in place. There is no sort of sealer used at these tube joints, so hot gear lube will seep. 99.99% of these housings will seep eventually, I've never seen one actually drip, a damp spot is the worst result you will see. EDIT: Make sure your vent hose is not crushed or kinked, an unvented axle will build up a positive pressure when hot which can cause a seal to leak.....

 

Thanks for the replies. It wasnt leaking like driping out. It was just wet on the axle housing and i could run my finger across it and see that it was a oil based liquid.

Im sending it to the dealer mid week so we will see what goes on. It is going in for the clutch and axle housing and clunking noise from the front axle.