As far as gear driven transfer cases go, what I've gathered is that as long as one or more gearseat is submerged in the oil, the rest of the gears will get lubricated. I don't know about completely vertical. Problem I could see is that the front output seal would be under the fluid line and would probably leak. As much as a 205 is clocked down in factory form I think its dumb to try to clock it any further down.