[Project Lazarus]

I have replaced those seals (they were actually good in my case) with some metal frost plugs following instructions I found here.

If you say it isn't that bad then I will try not to worry, just don't like the idea of that seal leaking at all.

Tim

Just an FYI for anyone that might come across this in a search.

Those rubber plugs are prone to leaking and burning up transmissions due to lack of fluid and people not checking them. The replacement metal expansion plugs are Fords new solution to the problem. A dab of RTV around the outside perimeter and you're good to go. I had to due this in the R1 transmission I had in a '92 Ranger sometime ago; basically same transmission only smaller.