Leaky 904

The shift shaft seal is bad about leaking. I've also seen fluid leak from the inner shift shaft seal. The one that separates the shift collar from the throttle pressure rod. Any way about it you'll need to get it up high in the air or preferably on a rack and wash it down with a can of brake clean and run it and see where it's coming from. It can be fixed in the vehicle most of the time but it's not easy to get too due to where it's located. Doing it on a rack is tons easier.

BTW: Chrysler's don't have a "weep" hole (it's actually a vent) on the side of the transmission. Your buddy must have been a shivy guy.