Re: Help....what is this hole in my motor?
Every drop of oil that you put in the gas goes through the engine. Some is burned (smoke) and the rest goes out the exhaust. That hole is a drain hole for the exhaust cavity. Guess what? That oil in the exhaust drans out of it.
However, a leaking shift rod seal will also let gear oil drain out of it there too. In any case, if you have water leaking into the gearcase, you should repair it. No point in just replacing one seal, do them all. You have to tear it apart anyway.