727 seal leak

Thanks for the info guys. I picked up the shift shaft seal yesterday and it looks nothing like the one currently installed. It is a rubber seal with a metal casing around it. I assume the rounded edge will face "up" when I install it. It looks like the current seal is just rubber and has broken down where you can see it leak from.

All the shift shaft seals are a steel case with rubber in the middle. Like an axle bearing seal, just smaller. The rubber on your's probably tore loose.