Hi Hilly, from one of your earlier posts you mention an '04 90" 160K, I assume this is what you're referring to here ?
Depending on how hard a life its had I would have thought the transfer case, with the exception of the centre diff shims/side washers should still be OK. Similarly I would have thought it was a bit soon for the intermediate shaft to be spewing oil ?
Replacing the centre diff shims/side washers isn't really difficult to do. Someone mentioned in another earlier thread that it's possible to remove the centre diff 'nose' without removing the whole transfer case which could make this job even easier 

 I can't comment on this as I've only done it (work on TC) on the workbench. Replacing these items (less than $50) will do wonders for drive train slop and if you install a single piece cross pin or go nuts and fit a centre diff ATB even better. 
 
Note that it's 
normal to have 45 degrees of rotational 'slop' in the front drive shaft with the handbrake on (rear drive shaft locked) and nothing limiting rotation of the front drive shaft (ie. front wheels jacked up or drive shaft disconnected) and with the centre diff locked.
It all comes down to time and money really and whether it's your thing to do it yourself.
As for the Rover diffs, well they're not really 'top class' to begin with so there's not much room for ignoring slop here without risking catastrophic results. If you drop the drive shafts at the diff drive flange check carefully for sideways/up and down slop in the pinion, there should be none at all. Make sure the pinion nut/bolt is tight. Sideways carrier slop in the diff is easily adjusted but after 160K km probably a good idea for new side bearings anyway.
Axle flanges are another notorious source of drive train slop in the Defender and hopefully an easy fix if this is the case.
Deano 

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