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one of two reasons: 1- the part of the shaft which comes in contact with the lip of the seal has a groove in it 2- there is a brass bushing behind the seal in the tail of the trans which is meant to hold the shaft steady; if it is worn, then the shaft is moving out of range of the seals' ability to remain in contact with it.
the shaft may have a groove in it which prevents proper contact with the seal, the rear bearing may have excessive play and the shaft is moving out of contact with the seal, the trans might be overfull or is heating up and creating pressure which the seal cannot hold.
Are you talking about the prop shaft? If so, then try checking the position of the oil seal. If it's butting up against that, then you may need to re-align it. Also try putting the vehicle in neutral and turning the prop-shaft whilst pushing it in. You should of course offer some lubrication to any splines before attempting this.
Transfer case fluid is different from the trans fluid, transfer case takes a Blue fluid made by G.M. can't think of the name of it, and trans takes Dex III or IIII read manual, if it is getting to transfer case then you deal between the trans and transfer case is bad causing it to **** the fluid out of trans, need to change the seals this time. Car Quest sells a 1 piece seal that seals both units instead of 2 different seals. Good Luck
Sounds like the oil cooler is leaking. That is what the oil filter actually threads into. If so, that is not too bad to replace. Other oil leaks/seals to look out for are tail shaft seal (back of trans), rear axle seals, and vavle cover gaskets on top of heads. I would recomend checking the rest of the car carefully for any other leaks. Parts are typically cheap, but labor can get expensive to get to leaking seals and replace them.
it sounds like you have a tail shaft seal gone in the transmission it's not a difficult fix if you are handy. Remove the drive shaft and remove the tail stock seal(there are install and removal tools but a hammer and a screwdriver will remove it nicely)then replace with new seal (if you don't have the install tool a 5" long piece of 2x4 and a hammer works BE GENTLE!!!!)and reinstall drive shaft..........these seals are available at your local auto parts store and are usually no more tan $10.00 hope this helps!.........good luck!
mae sure trans is at correct level should be a vent close to top of trans make sure it is not plugged. that would cause a trans to pressurize and find the weakest point. just a shot
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