Last year the kick down switch on my powerglide failed. So I pulled the pan off and cleaned the valve body and checked the wore. That fixed that problem, but after I put it back together and replaced the gasket, she leaked, quite severely. So I redid the gasket, added some liquid gasket and put it back together again. But she still leaks. Which she didn't before I took it all apart.
Now from what I can see it leaks from where the lever goes in to the tranny on the drivers side. Even though I did not take anything apart there, I think the oil I put in could be thinner than the old oil that was in there, and that it leaks for this reason.
Now, should I go and replace the rubber ring that is there (see below), or should I look for a thicker oil (can't quite remember which one I put in there now, but I did some research and should be the proper type).
mine leaks from the same place, was worse after i did a service on it...may have added a bit too much fluid to it...leak is not so bad now, fluid level is lower but in the safe range on the stick.
It's not that hard to replace that O-Ring. Did mine this year. It was available at Napa for less than $5. The idiot before me gouged the shaft by trying to remove it with the shaft in place. Don't do that, as I had to braze in new metal to make it work. Anyways, I would plan it for the next time you plan on changing the oil and filter because you will have to drop the pan. After that it is litterly one nut to pull the shaft inside the transmission. Make sure you get a mental picture of how it goes back together. Also, be prepared for some more oil to come out when the shat is pulled. Piece of cake.