Range Rover broke down

Transferbox ran dry...

3 weeks ago my Range Rover started jumping out of high gear on the way back home from work. Halfway I even stood without any gearing at all and could eventually move on again in low gear and a little later in high again.

What happened? I already had some slack on the transferbox since I bought the Range and the last few weeks it leaked a little oil. The lack of oil probably caused the nylon cups of the bearings to melt away and cause movement on the axle.
I opened her up last week and this is what I found...