65 Barracuda daily driver
This explains why the fluid was just gushing out of there. Absolutely nothing was stopping it from coming out of that hole and and another (offset) hole on the other side.
For the new gasket I used this Loctite hi-tack gasket dressing stick - that purple stuff you see there. Certainly better than smearing RTV or a hi-tack spray that sprays everywhere. Let's see how it performs, but I like the glue stick like application. The extension housing is back on the transmission and the nuts are torqued to spec (24 ft lbs). Now the output flange needs to be torqued to 175 ft lbs. The manual is recommending a special tool that holds the flange in place while you torque, but I will try if a big screwdriver wedge between two of the studs will work too. At least that's how I got it off. I ground the welds of the modified transmission crossmember down a bit more for some more exhaust clearance on the passenger side - it was very tight and even that 1/8" will help. I'm also replacing the transmission mount. I had replaced it when I swapped engine and transmission, but when I was tightening the nut the stud broke off. I thought I had used a coarse thread nut on a fine thread stud, but it appears that the stud on the new mount is metric. Makes no sense, but I'm about to go to a hardware store and get a M8 nut and see if that will work.
While I'm at it and everything is apart I will fix two other issues. The first one is the exhaust stud on the #7 cylinder that is leaking coolant. It was heli-coiled when I bought the engine. The coil came out when I was tightening the exhaust manifold the first time. A few more attempts to replace and seal it failed. So now I ordered some E-Z Lok threaded inserts.
E-Z Lok
Supposedly the adhesive on them seals against liquids so no extra sealant should be necessary (obviously it's needed on the stud that is going in there). I'll have to drill out the hole to 27/64" and then use a 1/2-13 tap. I even ordered their installation tool even though you could technically use a screwdriver.
Another reason I'm worried is that the coolant might leak out of the exhaust stud and find its way into the cylinder and eventually into the oil. Anyone ever had that happen?
Anyways, the other issue was what I thought was a lifter tick. Quite a few people here mentioned that since it only happens under load that it's probably an exhaust leak. As you can see on the old gasket that I just took off, the gasket is severely damaged where the coolant leak happened. I will try to make sure the coolant leak is fixed before putting the manifold back on. Maybe I can refill the radiator with coolant and apply some air pressure at the overflow hose?!
I got some Remflex gaskets that will hopefully do the trick. I had broken off the outer exhaust stud on the slant 6 and never got it out, but with the Remflex gasket there was no exhaust leak.