Update:
Output shaft is the culprit
RHDMK3 said:
Yeah if the bearing was bad and it sat in there for a long time it could have put a groove in the output shaft. Resulting in a leaking seal. But that is very rare. It would have to have a lot of weight on it as well. Its probably just your seal. Thats an easy fix.
This is what has happened you hit it right on, but unknowing to me the seal was brand new when the new d/s was installed and its gone along with the bearing and the output shaft. I was fortunant enough to take my car off the road when i did because another few days of driving would have started to destroy my d/s. Im going to finalize everything within the next couple days but the best route from here seems to be to just grab another w-58.So all the chassis talk was mere speculation, but it is gettin old and tired.For reference my tranny has 201k miles so its time its up.