well i just did my tranny gaskets today....i experienced the bulge thing...i took the pan back off and the spot that bulged had tranny fluid on it...but i couldnt stop it cause it was a slow drip from the trnny....i added some non hardening gasket in that spot and didnt tighten it as much and i havent noticed any leaks yet....but make sure your surface is clean and dry....


got my 78 merc with a 250 I6 and i love it.