A few questions for the T16 experts out there.

[Jon Bradshaw]

This topic of my carrier is covered in more detail in another thread. I am running this carrier with the original diff but a newer engine and transmission. The diff is at the "front" (the old rear) and running in reverse but the drive train is running as normal in a 3 speed tranny. I set it up to spin the tranny in forward but the diff in reverse.... The Engine is in backwards with the tranny at the "back" and running through a transfer case and a long driveshaft past the engine. Pics in the other thread.
There is a possibility that the spinning of the shaft is pooling the oil against the seal but I think upon further thought and reading the comments that it was probably excess heat due to overly aggressive steering.
I will not make any mods to it except that it now has a better breather.
As suggested I simply cleaned up the oil and replaced the amount that was lost. As I said it was only about a cup or two.
I removed one track link from the left and will have it out tomorrow to see if it made a difference.