There is a flexible seal to keep oil from leaking between the outside diameter of the yoke and the tail case of the transmission. However, there is no flexible seal inside the yoke to keep oil from seeping thru the drive spline. Instead, there should be a plug inside the yoke to keep the fluid contained.
If the yoke came from a salvaged car that was in a front or rear collision, that plug in the yoke may have been knocked out. You probably won't find a replacement plug, so just weld a freeze plug over the opening in the yoke.
I had this happen to me on a Ford yoke a couple years back and it leaked right where your arrow points...
Last edited by Rumbles; 31st October 2013 at 20:16..
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