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91 300TE 4MATIC. Why is hydraulic fluid is coming out of the breather?

(1991 Mercedes-Benz 300TE 4MATIC)
in Chelan, WA on March 04, 2012
Hydraulic fluid pumps out of the breather that is on top of the unit behind the transmission. It looks like it is a seperate unit between the transmission and transfer case. I might be wrong and it might be part of the transfer case. But does anyone know why hydraulic fliud would pump out of there? It drains the resivoir. I think it only happens at higher speeds. Please help!
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