I have the same transmission and had the same leak and it is definitely transmission oil. During my engine rebuild, I replaced the packing and gaskets during reassembly. I also cleaned the torque tube (including sanding) where the packing slides to enable the ball seal assembly to slide back far enough so it is spotless. I tightened the packing gland (collar), to where I felt it would be sufficient to stop the oil, but it was leaking following my first test ride. I snugged up on it again and it was still weeping. One more time did the trick. Trust me, its really tight.

Last edited by Phak1; 12/07/2020 11:04 PM.

Phil
Moderator, The Engine Shop, Interiors and Project Journals

1952 Chevrolet 3100, Three on the Tree, 4:11 torque tube
Updated to: ‘59 235 w/hydraulic lifters, 12v w/alternator, HEI, PCV and Power front Disc Brakes
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