A week ago my rear differential had a problem where it punched a pen sized hole in the rear of the transfer case and the fluid leaked out. It hasn't been driven since but I didn't know if I could just weld over the small hole and just replace the inside the differential? and has anyone heard of this happening before I am new to rovers so I don't know?

 

How could your rear diff. somehow punch a hole in your t/case, makes no since at all.
If you t/case has a hole in it, you will have to open it up for a complete inspection and repair.
Mike

 

When I took it to the Auto shop they said that it wasn't a rock or something like I thought it was that punched a hold in it but something went wrong inside and punched a hole in it.

 

Don't spend too much money on having it checked out before you get some prices on used guaranteed t/cases. Too many people get killed on diagnostic labor when if it is really serious, you should just be looking at a replacement.