I have a dune buggy built on a 1964 beetle chassis and was wondering if by having the car on jackstands and the rear axles down could the gear oil leak down the axles and out past the bearing seal? i have changed the seals the orings and the gaskets on the cover and when i put the drum back on and put the castle nut on i get fluid leaks.on the passenger side only the drivers side doesnt leak thanksJoe

I had the same problem on the driver's side. I ended up changing my whole axle, but that's because my dad hit a tree in the 60's or 70's and bent the axle. It kept wrecking the seals. Now with new seals it doesn't leak any more.

You need to be really sure you don't damage the seals in any way when installing. I did that too and needed to put a new one in again before the leak was solved.

Have you torqued the drums properly?

No I have not torqued the castle nut was just seeing if it would stop leaking it doesn't leak when the drum is off its been off all day and its dry but when i put the drum on and start to put the castle nut on it starts to drip.