What would cause ATF to leak out here?

 

Out the front is either a bad seal, or stretched case. The case problem will show up around the countershaft front bearing race.

 

Interesting... Am wondering. How does it stretch?....

 

It stretches, from being overloaded.



Since you have a 1st design transmission, it will look like the top trans in this pic. (Lower is the 2nd design, 88-up or whatever year it was) Notice the stain below the front countergear bearing, which is the round thing about 2" in diameter below and to the left of the clutch gear bearing retainer. That's how this one died. That's how yours died. That's pretty much how they ALL die. That's why it's POINTLESS to "rebuild" it; the case is destroyed. NO AMOUNT of "rebuilding" no matter with what "kit" will EVER fix that. It is used up permanently completely totally altogether and forever. End of life. In pace requiescat.

 

Just a quick FYI for those that always ask "which trans do I have?",
the easy way to check at a glance is, the upper trans with the solid color counter shaft bearing cup is a NON-WC and the lower one with the 2 color countershaft bearing cup is a WC.