went down below to install a different vss gear and I found this:

damn ! u-joints and seals ?

 

How much play in the output shaft? Is the bushing bad? Maybe a bad or out of balance drive shaft. The seal went bad for a reason.

 

there's a little play in there, should there be none at all or is some acceptable ?

basically, i'd just like a "heads up" from you pros b4 i take it in.

 

Pull the slip yoke off and examine it for any signs od wear.
My seal leaks and the bushing is shot. I have grooves cut into the slip yoke. Not a high priority as the damage is already done. When I get around to it I will replace the bushing, seal and U joints. I do not recommed that you wait. Check it and fix it asap. You may save the slip yoke if you get to it now. I was too late.

Regards

Jean Marc Chartier

 

Why is the leak going forward on the trans? It should be a little drier before the seal. I would wash down trans and verify the leak first

 

My thoughts exactly. That also looks more like engine oil than tranny fluid. is there any red to it all all? That may be a valve cover or rear main seal leak blowing oil back.

 

Looks like the rear seal leaking to me. Every ford I have had eventually did it. I weeps from the seal and runs down the housing. Thats why it looks the way it does.