GRNHydra,
I do have a constant ATF leak between the lower transmission extension housing, seat, shims, 6 bolt collar area. I removed and checked the O-ring on the seat and it was properly seated, along with the thin paper shim on the collar. Re-torqued to specs and it still leaks. I'm probably going to remove again and apply Permatex "The Right Stuff" and reseal. I've always had a small leak in that area and noticed when I first disassembled that area it was loaded with silicone. Thanks everyone for your input and suggestions.
Just a FYI, I've seen some photos where the Hydra-Matic transmission's tail housing oil return hole was plugged with chunks of silicone. Not good.
Inside the tail housing, excess silicone at the ball housing seat connection must of broke off and found its way to the return hole.
If you use Permatex it should be used sparingly at the ball housing seat connection.
I have a drip in the same place.
Might be something to ask why to John at
http://nwtparts.com/He might have a little insight as to why the 4 3/8" Inside diameter rubber seal O-ring isn't sealing.
Read the last sentence in this
POST under the photo that has the bolt with a nail in it.
Early Power Glide transmissions lubricated the u-joint and torque tube bushings the same way as the 54 Chevrolet 1/2 ton Hydra-Matic transmission does.
Power Glide Transmission -Rear Pump Section It could be leaking on the shim side of the ball seat but don't think so.