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Hello, I have the transaxle out of my Vair right now while freshening up the engine. It has been leaking from day one of purchase. Last year I removed the transaxle to replace a broken Crown mainshaft and install a new pilot bushing. At the time I wasn't sure where the leak was as everything was oil contaminated, after all was cleaned and reassembled the leak remained and found it to be the throwout bearing collar/input seal. I think the seal might just be in the wrong position to hit the input shaft in the right spot or the seal is completely tore up from before or both.

yes the seal needs a spacer behind it. When I sell one i send them out with the spacer. You can use the metal ring that goes in the stock corvair snout.Spread it with a couple of large screw drivers. Its the right thickness to position the seal. sometimes if the collar will sit flush on the adapter plate you can use some sealer rather than the gasket which will get the seal closer. Should be an easy fix. Dial indicate that bellhousing!! just in case. Mike

Alright! Now that's the tech I'm looking for. Thank you Mike.

For whatever reason the bottom 1/3 of the throwout bearing tube had not sealed with a gasket and rtv. That was the leak, now repaired with a new input seal and without any gasket on the tube this time just rtv sealant.
Transaxle has no leaks now.