Just installed a fresh 250. During the cam break-in it puked about an ounce of oil out the bottom of the bellhousing at the flywheel cover. Put a pan under the bellhousing and kept the cam break-in going without stopping.
After 20 mimutes, shut it off, and decided I had to pull the engine.
Got it out, upside down, and slowly with two sets of eyes pulled the pan. It appeared the leak was coming from one side of the pan gasket where it takes a 90 off the main cap. Found a small lip on the main cap, both sides, that looked like it could creat some difficulty for the neoprene gasket material to mold around.
I'd put the gaskets on first time without sealants, and decided to use some this time. Installed new gaskets, used some sealant where the block/cap parting line was, and a bit where the cork/neoprene gaskets overlap for a bit of insurance.
Drove it about 70 miles yesterday, and the belhousing, tranny, are just covered in oil. DRIPPING.

I'm really bummed. The leak probably isn't worse than the old worn out engine's was, but it had valve cover/side cover issues, as well as worn rear main and seal. I've got a 7 day tour coming up on the 15th and I can't figure wheither to "do-over" again, get it broke in and just stick oil in it and leave marks till I get back, or what. I can't even figure out the "why". Cam plug was dry, oil plug was dry, so it comes down to my screw up on the pan, or rear seal.


'37 Master Deluxe 2dr sedan
'66 Elcamino, 250, 3sp OD
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