Two problems related to axle shaft seal have been reported for the 1997 Jeep Wrangler. The most recently reported issues are listed below.
Noticed oil leaking. Had the vehicle serviced at the dealer who put a new seal on. After a second seal was put on, took it to the dealer to have the torque turning checked on the rear pinion gear. Was told that the bearings were all bad and needed to be replaced. Also, they had to rebuilt the rear end.
Axle oil seals are leaking over the rear brakes (on both sides). I know at least 3 other persons with the same problem who had it fixed under amy warrenty has run out, there should be a recall.