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That's what I thought, plug that hole up no more leak..
Yep, that's a vent hole as the yoke travels back and forth, that's why you need the o-ring, but there's supposed to be a non splined area in the yoke for the o-ring to ride on so it can seal, so that yoke shouldn't have a hole some idiot drilled one, that yoke is used with an output shaft that has one spline missing, the missing spline acts as a vent back into the tail housing, check and see if you have a missing spline on the output shaft, if you do just plug the hole up and you're good to go, if there is no missing spline you'll have to get the proper yoke and use an o-ring, there's also a cup that goes on the shaft too..
Here is one I had machined. It's a slip yoke conversion an a fixed yoke TH400. But you should get the gist....I just remember thinking, there is fluid coming off of the yoke... now it could have been that output seal was worn like throwing a hotdog down a hallway and I corrected everything wrong. We will see and I will let you all know.
Cork is for wine not sealing transmissions.
The only way to go if it a race deal and you're taking it apart often, they are reusable, I won't us them on a stret deal though.
That's what I have on mine and no leaks.
