UPDATE: we never fixed this and again this winter (freezing cold) it barfed out the vent more and more. No noise and drives fine. I just changed the oil today and the sides of the t-case has burned black fluid remnants down the side of it. It does give an odor when driven for long enough to heat up and cook off. I dunno, gonna top off the PTU and do another drain and fill on the trans the next warm weekend we get. I am thinking we are gonna sell soon (97K on it) as the suspension started squeaking this winter too and from what I've read, it is some non-replaceable bushing in a tube that the upper control arm bolt goes through. Hopefully a quick hose down with some silicone spray and some warmer weather will make it go away for a while.
Stupid stuff like this drives me crazy because the car looks and drives great, but I am not putting money into things that are poorly engineered and destined to fail again. Ugh.