BossBob wrote:

Is the breather valve to stop water ingress as the PTU will probably be lower than the open end of the breather pipe which would be high enough to wade safely?

Good point. I am not too worried about this, as I almost never ride in condition where water would reach the top of PTU. To my understanding, the valve stays shut pretty much at all times, and opens only when there are pressure differences due to temperature. And if it works for Volvo xc70 and xc90 - why shouldn't it work for freelander? More educated opinions are welcomed.

Update on AWD after PTU and sleeve replacement. Yesterday was the first time I managed to test it out. Weather was crazy bad, -20C, pure ice and snow, and god how good the 4x4 is on Freelander. Drives like a completely different car now that it is fixed. I knew that driving would be better, but i didnt expect it to be THIS better.