I'll pull the front bearing retainer off a T98 I have loose and look. I've seen different 4spds with a felt or oil seal inside the bearing retainer to seal against the outer shoulder of the input shaft (and some with no seal) but don't remember on the T98. I did a quick search on Ebay for a Ford T98 gasket set and came right up with a gasket set the has two front bearing retainer to case gaskets, shift cover gasket, pto cover gasket and rear cover gasket, no input seal and that leads me to think there is no seal on the input shaft of the T98. I have found bearing retainers installed with silicone and the oil bleed back hole and port cast into the bearing retainer plugged where it should be open into the trans case, there should be a gasket (not made of felt)between the bearing retainer and the case held by the 4 mounting bolts, the bolts are spaced so the oil return hole lines up with the port in the bearing retainer. I'll check my trans and parts book and get back to you soon with more info. And John H. is right, make sure your case breathers are open.
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