If you are getting no resistance at all on the hand lever, adjust the linkage on the passenger side of the transfer case with the threaded rod and 2 stacked nuts. Then adjust the brake pads by turning the 1/4" square rod that exits the ebrake backing plate between the brake and transfer case on the driver side in a clockwise direction until it stops and then back it off 2 clicks. I use a 1/4" Female to 3/8" Male adapter and a 3/8" wrench for this to prevent chewing up the adjuster.
Depending on a few obvious factors, sometimes enough heat can be generated during an "emergency brake drive" to mess up the oil seal on the output shaft, causing it to leak from then on.
--Mark
1973 SIII 109 RHD 2.5NA Diesel
0-54mph in just under 11.5 minutes
(9.7 minutes now that she's a 3-door).
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