Possible Source of Leak...

Mel did you replace the O ring seal thats in the flywheel itself? you also might want to look for cracks in the case. I had a warped flywheel on a 69 vert I worked on that leaked when it ran.

Mel did you replace the O ring seal in the back of the flywheel?

The only other thing I can think of would be the flywheel is warped, I had that problem on a 69 vert I worked on. You night also want to look for cracks behind the flywheel, I have ran in to that problem also.

I've had a similar leak in the past. Turned out to be the No. 1 main bearing. It has partially spun, the dowel pin in the case leaned over allowing the bearing to move a bit, the bearing/case eventually wore to that the bearing was able to move forward and backward. Before I was aware of this, I replaced the seal, and found the leak continued.

--Mike