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Originally Posted by beezel
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The rear diff has a breather - it's a small tube that terminates on the front side of the tool well/sub-woofer enclosure. In my off-road configuration it's about 24 inches off the ground.
There is a similar "toy breather" on the front end too - I remember seeing it- but I don't know what it vents.
The main concern in wading deeper than the LR recommended limit (16" on a stock truck) is getting mud and water in the bell housing and wiping out the rear main seal. That's happened to more than a few Freelanders.