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There is no need for oil to be in there and in fact I have several customers that have excess oil building up in that area that leaks past the stamped metal plug on the end of the shift cover.
I currently having my machinist modifying some P1800S shift covers with a seal in the front of the 2 piece housing.
The later shift covers used on 1800E/ES, 140 and 164 Volvos have a replaceable seal in the same area so I am having something similar done.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502 hiperformanceautoservice.com or oldvolvosonly.com
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