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I pulled my Alpha 1 out drive off to grease u joints and check gimbal bearing to find a fair amount of gear lube in the drive bellows... I'm going to assume the shaft seal in the upper gear case has failed. Or where might it be coming from?
Since the drive is the Only place it could come from, it's a fair assumption that it is in fact leaking.
May need a new yoke as well, they tends to get a groove worn in it and it won't seal.
If just replacing the yoke (which usually is needed), it doesn't have to be reshimmed, but the rolling torgue needs to be set, and will also require new ujoints if the yoke needs replaced. It also takes some special tools.
I would bet the shop estimate is a worse case senareo since they have no way of knowing what is bad or not without taking it apart and looking.
