Its my opinion you have a bad seal up at the transmission bell as Mtneermike mentions.... and its blowing back all over everything else. First things first....take care of the bell on the enclosed driveshaft, and if you do not have a manual you can go here until you get one. At least you'll know whats involved and know what the garage guy is talking about.

http://chevy.oldcarmanualproject.com/


1937 Chevy Pickup
In the Gallery
1952 Chevy Panel
In the Gallery
More photos
1950 Chevy Coupe
Pictures!

I'd rather walk and carry a Chevy hub cap than ride in a Ferd.
I can explain it to you, but I can't understand it for you smile