Are both you guys (sharky and Paul) sure that it isn't the output shaft seal leaking and dripping/running down? It's directly above it, and if the oil is warm you would never know unless you ran it with the fenders off where you could see the trail. I'd be either changing or checking that seal. I bet that's the leak. There is no way that it is the cork gasket. They can't be "bad". It's a round cork gasket. Only way it can leak is if there is a tear, or if the hydro wasn't close enough to the rear end. Only way the hydro couldn't be close enough is if the housing is made wrong, or the bearing on the rear was sticking out too far. That would present a different set of problems altogether. Change that seal, and try it again. You can get a seal at Napa. I have the number somewhere if you need it.
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