leaky driveshaft?

I recently bought a 88 900 turbo convertible that I would like to get running. Yes, perhaps I did not know what I was doing, specially coming from Volvos (I have a 91 740 turbo whose engine and tranny I had out once). But, let's talk about the current issue: the passenger (or turbo) side driveshaft seems to have a lot of oil around where it connects to the transmission, as shown in the picture below:

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Where is this oil coming from? Does the engine and transmission share the same oil or they are separate (doesn't that show how much I know about those cars?)?

Reply to
Mauricio Tavares
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