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8 3/4 leaking - advice needed

The axle surface is actually pretty good - the photos show what look like grooves, but in reality the shiny part is very smooth and a fingernail doesn't grab or feel anything.
I was always going to cut a notch and chisel off the collar - it's what the FSM shows and is as per Threewood's sticky. The brake shoes have cleaned up really well and don't appear contaminated - I'm going to give them a light sand before I re-install as well. I've got disc brakes up front and haven't noticed the brake performance being compromised (I think the axle has been leaking for a while) so it can only be an improvement on what I had before anyway. The front discs probably do 80% of the work anyway.
This has now turned into a much bigger project - it started as cutting off the excess length on the U bolts - that's when I noticed the leak on the back of the tire. Now I've completely removed the drum brakes and drum support and cleaned them up for painting, the axle housing is getting cleaned up and painted, and I'm repainting my Magnum 500's (by hand!) while the car is off the road.
 
I've found the bearing retaining collar will loosen by using a large cold chisel to partially cut the collar on 2 or 3 spots while supporting the collar solidly. That action spreads the circumference of the collar. I have also removed the bearing inner race by cutting the cage and rollers off and quickly heating the race with a rosebud, expanding, and driving it off with a large cold chisel. If lucky it will just slide down the shaft. Presses are not always available.
Mike
 
Check the vent on the axle housing. If it gets plugged with dirt, pressure can build up inside the housing and force grease past the seals.
I have had some vents that slightly pop when removed, due to the pressure inside.
Sorry, late to the thread. How do you clean out a dirty vent?
 
I have a similar leak, mine is on the passenger side axle. At first I thought it was the wheel cylinder, and had both of the cylinders replaced. The mechanic pointed out that it looked like an axle seal leak. This was done during my wheel alignment, which turned out bad. Car tracked straighter before the alignment which was done using a flaky alignment machine. I still need to find a place that can competently perform a wheel alignment using a machine that functions properly.. No point in going back to that place.
 
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