Mark, I just had similar problem with AT on my '84.  Best thing I did was to take it to a local AT shop and paid them $125 to clean (R&R) valve body, replace seals, and refill.  The pressures inside the AT weren't right and that is why I was leaking.

John Lauterbach
Macon, GA  
  ----- Original Message ----- 
  From: Mark Dorm 
  To: vanagon@GERRY.VANAGON.COM 
  Sent: Thursday, December 05, 2002 11:53 PM
  Subject: Re: ATF and Final Drive

  I guess I should mention I see the atf fluid spit up on the coolant hose when viewing the engine from above the engine, on the left at the rear, some gathers in a pool on the case itself, well I don't actually see it spit up, I just see the result of it

  >From: Larry Alofs 
  > 
  >Sounds like you're looking at the governor. It's on the final drive 
  >section near one of the axles. Even tho its mounted on the differential 
  >housing it is part of the transmission control system. ATF flows thru 
  >it; the rate of flow is regulated by the speed that it is driven by the 
  >gears in the final drive. The valve body (the control unit in the trans) 
  >uses this information to decide when to shift. 
  >The governor could certainly be a possible source of ATF leakage in that 
  >area; I believe there are some O-ring type seals involved. If you pry 
  >the spring out of the way, you can pull it out. Be careful about dirt. 
  > 
  >Larry A. 
  > 
  >Mark Dorm wrote: 
  > > 
  > > I have read everyones response so far, and I know about the differential and 
  > > the 17mm and how that stuff has a sick smell to it ie not healthy, its just 
  > > that big round thing with the wire clamp on it that puzzles me, the trannie 
  > > level is always just fine.... 
  > > 
  > > >From: Marla Stelk 
  > > >Reply-To: Marla Stelk 
  > > >To: vanagon@GERRY.VANAGON.COM 
  > > >Subject: Re: ATF and Final Drive 
  > > >Date: Fri, 29 Nov 2002 18:25:41 -0500 
  > > > 
  > > > Hi Mark - unfortunately I have been learning more about the final drive 
  > > >and tranny than I ever wanted to know - or at least not by breaking down 
  > > >repeatedly. The final drive is part of the differential. You have gear 
  > > >oil in there that is thick and stinky. The two should never mix (unless 
  > > >you are driving my personal sh** box - ha ha - "i love my van, i love my 
  > > >van, i love my van....). To check your gear oil level in the final drive, 
  > > >you have to remove a 17mm bolt on the side of it (passenger side for an 
  > > >'87). The oil level should be just below the hole. If you are leaking 
  > > >tranny fluid, you should check to see if the hoses on the cooler above it 
  > > >are tight. You may have a slow ATF leak, but I would still try to trouble 
  > > >shoot where its coming from because it will only get worse over time and 
  > > >you don't want to replace your tranny any sooner than you need to - trust 
  > > >me on this. It may be the seal on you tranny pan is leaking if its old. 
  > > >Talk to Ken at Van Again - he sells a tranny filter and gasket kit and he 
  > > >could walk you through how to replace it if necessary. Just make sure you 
  > > >do not get any dirt into it - very bad. Or even easier - have your VW 
  > > >mechanic replace it for you. 
  > > > 
  > > >Good luck- 
  > > >Peace, 
  > > >Marla 
  > > >'87 Westy Van "Morrison" 
  > > > 
  > > >----- Original Message ----- 
  > > >From: Mark Dorm 
  > > >Sent: Wednesday, November 27, 2002 10:51 PM 
  > > >To: vanagon@GERRY.VANAGON.COM 
  > > >Subject: ATF and Final Drive 
  > > > 
  > > >I have this leak. Its red and it doesn't smell strong. So its not the oil 
  > > >and its not the differential. It must be the ATF. However, the ATF level is 
  > > >always just fine. So does the dipstick for the ATF not reflect the level in 
  > > >the final drive? 
  > > > 
  > > >I'm not even sure what the final drive is, although I bet Robert Blake's Ex 
  > > >could. 
  > > > 
  > > >I've looked at that wide disc with a swing clamp over it, which I think is 
  > > >the final drive, or the cover for it. Never have removed it though, not 
  > > >sure what will happen if I do. 
  > > > 
  > > > 
  > > > 
  > > >Help STOP SPAM with the new MSN 8 and get 2 months FREE* Get more from the 
  > > >Web. FREE MSN Explorer download : http://explorer.msn.com 
  > > 
  > > _________________________________________________________________ 
  > > MSN 8 helps eliminate e-mail viruses. Get 2 months FREE*. 
  > > http://join.msn.com/?page=features/virus 

------------------------------------------------------------------------------
  Help STOP SPAM with the new MSN 8 and get 2 months FREE*