That looks like the 4WD extension housing of the 42RLE transmission (2007-2011 auto), not the transfer case. The 42RLE can be used as a 2WD or 4WD transmission, and that unit allows the 42RLE to accept a transfer case for 4WD applications. It's a mostly hollow unit that mounts between the transmission and the transfer case.
Personally, I would replace that extension housing. It's one complete aluminum part, and I don't see how you can repair that and maintain any structural integrity. Anyone who has installed a Rubicrawler will have their factory extension housing laying around, so you should be able to find a good deal on one.
Ouch. This sounds like it's going to be a pain in the ass to repair. Would replacing the bolt be a possible temporary fix? As a broke college student I'm not sure when I'll be able to get around to fixing this. I can't seem to find a used 4wd housing online.
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:thumb: Wow A lot cheaper than I was expecting. Thanks for all the advice so far. I found one for $55 and it's the 4wd version. Is this a repair I should let a professional handle or should I give it a shot? I'm assuming I'll have to disconnect the drive shafts and remove the transfer case to get the new housing in.
Well that depends entirely on your comfort level with your mechanic abilities. Getting the transfer case off is more than half the battle. After you get the transfer case off, there isn't much more that you'll have to do, but you do have to be careful with the realignment of the oil line for the rear bearing.
I suggest locating and reading Advance Adapter's instructions for installing the Rubicrawler. The instructions should include details and pics on removing the factory extension housing. That should help you realize if it's a job that you think that you can do. BTW, I would be surprised if this is more than a 2 hour job for an ASE certified mechanic with a proper shop. Depending on the costs in your area, shouldn't run over $200 in labor. For a DIYer in the garage, I bet it's about 3.5 to 4 hours, and I would have a buddy with me. The transfer case is heavy and awkward to handle alone.