Yes the car has factory power steering, but I am 100% sure the leak is not power steering fluid. I had considered the torque converter as being part of the problem.
I have never pulled the oil pan on a y-block, with the transmission out, would that be a good time to replace the engine rear main seal? It is also leaking a little, nothing like the trans leak.
Does it make any difference if the trans is air or water cooled. Mine is air cooled, someone told me that meant it was an early 56, the VIN indicates it was made in Feb 56.
Thanks to all for the support, I have not been on this website in a long time, I will fix that so I can take better care of the old Fairlane.
Marty

Marty