I have a oil leak at my valve cover/breather valve, when I was fixing it I noticed dirt sticking to the case on the Mag side at and under the water pump and under the Mag. Is this a oil or water leak? What should I do next?

 

Clean this area up,start the engine and see what leaks. You have a water pump seal at the front and an engine oil seal at the back with a "dead man's" space between them and a weep hole for the purpose of finding either of the seals have failed. It's best (if you do have a leak,oil or coolant) to remove this cover and do it right. Easy if you do this,dangerous if you try to replace either seal while the case is still on the engine. You can damage the water pump shaft which several people have done! It's just a simple knock out and replacement of both seals with the case off! Flywheel has to be removed and stator unbolted and moved out of the way! This is why a lot of people try the short cut method and can get in over their heads! Saw it multiple times at the shop when they were brought in for me to try to repair after the damage was done!!!! OPT

 

Where are the weep holes? I had (I think, oil coming out of the wire grommet for the stator). I was a qtr low of oil and not sure if the breather leak lost that much oil. I think I should change both seal just to be safe. How hard is it to take off the fly wheel? Anything I should look out for??

 

Weep hole is at the bottom of the water pump housing. If oil or coolant drips out it is best to replace both seals as you have to pry out the oil seal to be able to knock out the water pump seal(if you remove the cover to do it the right way!) Flywheels are sometimes hard on the big twins,but a good adjustable puller and three 8mm bolts to screw into the flywheel plus a little propane heat under pressure will usually pop it off. Just have to be careful and don't damage the crank threads. OPT