It's not possible for oil from the engine to get into the differential. That
hex plug is the differential fill hole, and the bottom of the hole is the
correct level when it's full. Draining is done by removing the pan, no oil
should come out when you remove the plug if you are on a level surface.

You have ATF in the diff. The AT has a pump and functions using hydraulic
pressure.  You are pumping ATF into the diff because a seal has failed, and
there is no escaping a full transmission rebuild, other than swapping in a
good used one.  Should run around $2k if you remove and install the unit,
add $500 or so if the shop does it.  A used unit goes for around $500 plus
shipping if you can find a seller willing to ship.  Check Craigslist and The
Samba.

Sorry, but there is no other solution.  You can stop looking for one and
have a beer. :-(

Stuart

-----Original Message-----
From: Vanagon Mailing List [mailto:vanagon@gerry.vanagon.com] On Behalf Of
Michael
Sent: Saturday, April 09, 2016 10:36 AM
To: vanagon@GERRY.VANAGON.COM
Subject: The hits keep coming

Many of you have replied with your expertise on the matter of a blown tranny
on an 88 auto. Or at least those kind of symptoms.

Now here is a new development. I wanted to check to see if I could tell if
ATF was mixing with the differential so I unscrewed the drain plug and oil
literally came gushing out. When I closed it after filling a couple weeks
ago,it was a trickle which I believe means it was filled with close to the
1.3 quarts that is recommended.

Now, I also changed out the engine oil (it's an ej22 Subaru) and filled that
up right. Well, the engine oil is half gone and I believe that's what was in
the differential section. No visible leaks anywhere.

Hard to tell if ATF was mixed in based on the Amberness of synthetic engine
oil and the purple color of the diff oil. Plus, it's quite surprising when
oil comes flying at your face while under the van.

I don't really know what this could mean other than probably a good deal of
money to fix it.

Any ideas on the matter?

Mike=