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The mechanic also told me that the tranny seal was leaking and may need to be replaced. He said it had been dry for along time (10 years) and may self seal after getting soaked. Is this likely?
This is the hardest leak to fix. The main cause of this leak is wear in the main drive gear bushing, which goes between the main drive gear & the main shaft. Wear in the bushing allows the Main Drive Gear to `wobble` slightly on the mainshaft, making any attempts to seal it doomed to failure eventually. It is rather easy to re machine the mainshaft to accept a 5 speed bearing, eliminating the bushing and the cause of the leak.
At the shovelhead.usa technical forum I came across a replacement main seal being machined by one of the members there and most say it is a pretty good cure for the leaky seal. I wish I had found it before I replaced the one on my shovel. When this one starts leaking I will do just that.
There is a pretty good thread in this forum concerning dependability updates for shovels. I would recommend reading it. Some are cheap. Some are just labor and some are a bit pricey.
My shovel is pretty tight. I have a leak near my clutch release lever I need to resolve, but that's about it. And all shovels will likely leak at the crankcase vent. Do not put a filter or any other obstruction on that one. Will end up building up pressure and you will get leaks elsewhere.
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