To drop or not to drop, or what is the question?
 

Rebuilt the engine a year ago. Still runs extremely well, starts right up.

1. After rebuild, no leaks, before or after driving.

2. But now have a leak in the main flywheel seal. (Other sources ruled out including all the upper breather, cam, therm o-ring, pressure sensor etc.,). Again this seal did not leak post rebuild. The only real change I've made is to add a small "catch can" from the outlet on the bottom air filter housing.

3. This leak is just barely manageable. Meaning it occurs only when the car is driven, and is contained enough that after driving back and forth around town and to work etc. the car can set and will not leak onto the ground.

However, this area needs to be sponged/wiped, after each drive or the dripping will reach ground in a silver dollar sized quarter. So it's pretty large if I let it get out of control.

No other leaks are ocurring, including the no. 8 bearing seal..Hurray, Hurray :)

1. So should I drop the engine and address this seal?

2. Will it get worse and damage the engine? (Again, flywheel main seal)

3. Should I leave the patient alone and just keep stabilized, cold engine sponge "bath" after each drive?

Thank you.

Fix it before it ruins your clutch or gets bigger at an inopportune time.

Drop it and fix it. That problem can go south really quick, leaving you with way more things to fix. Ask me how I know.