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That is just a vent for the trans. Is it overfilled? The drain and fill check are on the back. But there is a fill for the engine transfer gears that might have been overfilled. Has anyone been been servicing it lately?
 

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Yes, that shift shaft has 2 seals. Engine and trans are seperated by an internal seal. Buy some seals and gaskets. Drop both pans. Disconnect shifter and front motor mounts. Jack engine up. Remove shift lever inside trans and slide the shaft out. Have at 'er.
 
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