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Sounds like you have a bad bearing on input shaft that moves so much tjst seal cannot handle it. You should be able to tell if it is trans oil or engine oil by feel or smell . Trans oil will have a much more heavy odor.
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56 Chevy Bel-Air 2dr. HT (purchased new)
71 Chevy Cheyenne SWB PU (502HO)
65 GMC short bed step--work in progress and my gofer
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