Thanks John!
If the vent plug makes the water end up outside of the gearcase instead of inside I would call that a "win".

I can put a small shallow pan underneath the machine to catch any water drips.
Not sure how rusty the parts are in the gearcase now but I had the machine out of the laundry room about 10 months ago to clean the dryer vent and didn't see any sign of fresh oil on the floor. So I am guessing that the foamy oil is a recent development.
Yeah it wouldn't make sense to put a new seal kit in on top of metal shafts that are rusted/worn. Do they make a retrofit seal that contacts the agitator shaft in a different location? Like a metal cup that is a press fit over the tub tube with a rubber seal that fits over the whole seal/bearing area and contacts the agitator shaft? Not sure if there is room for something like that with everything in place but it kind of looks like there is from a youtube video that I watched.
Now here is a question. Isn't the seal area normally "dry"? I pulled the agitator off and I think it is designed to trap a pocket of air (like an upside-down bucket) so that the seal zone isn't submerged in water when the tub is full. I guess if air was able to leak out of the top of the agitator it could slowly fill with water inside when the tub is full but they even put a large rubber washer up there to keep it airtight.
I have included a bunch of photos. The visible part of the seal around the agitator shaft looks fine to me. Is this part of the water leak path??? I am trying to visualize where the water goes.......thru the seal(s), down the agitator shaft and bushings, past all the stuff that is mounted around the shaft under the tub (clutch or brake assembly?) and then down to the shaft/case interface. The last photo is of that area, and I did not clean it. No sign of water.
With the plastic agitator removed I looked inside it and could see condensation (from the hot water) and some drips of water from the spin cycle but other than that it didn't look like this zone was ever submerged in water. I can see some greasy residue in the lower part of the plastic from years of spin.
So is there a chance that the water in the gearcase is actually due to decades of condensation? Cold metal parts exposed to a humid environment? After all the gearcase is vented and the environment inside of the machine can get pretty steamy when hot water is used. This cycle has happened probably 1000 times, and 1000 drops of water = 10 ounces.
-Andy
