I've been sealing the splines ever since I had to eat the time on a transfer reseal when the customer crawled under the car and saw an oil stain where the driveshaft bolted to the companion flange. It was gear oil that seeped by the felt washer and made a dark stain at the seam. I didn't like working for free so I decided to use the method I used on other vehicles transfer cases and differentials (mainly Jeeps). That was sometime in the late 90's and haven't had a comeback since (but maybe none of the other owners have bothered to crawl under their Rover and look for stains.

 

I missed Jeff's reply before I posted my last one. I am going to lift the truck tomorrow and clean it to find exactly where it is and get some pics. From what I could tell it was at the driveshaft, but it could possibly be between the t-case and transmission. I just slid under the truck to have a look. I will report back tomorrow afternoon with my findings.

 

pray for the drive shaft...

 

Sorry for a late update,
I finally put the truck up on stands to see where this leak was coming from. What I found was oil covering the entire bottom of the truck, not gear lube. There was so much fluid I couldn't find the source. I washed it off and went to refill. Long sorry short, the oil cap wasn't screwed on. I am thinking this is my source of oil. Am I correct on thinking the oil would leak back out from the engine pressure? I am feeling pretty dumb about now since the truck has been sitting for a month. Oh well, live and learn.