Oil coming out the driveshaft boot - help!

Well, this wasn't how I planned on introducing myself to these forums

I have a '82 XJ650RJ Seca. I bought it two weeks ago for $700 from a guy who's owned it since he bought it new in '83. It's been completely garaged/ran/maintained since then and has 65k miles. Original chrome is in top shape and the paint isnt bad. Guy handed me an aged folded paper with 26 years of hand-written maintenance records on it.

Anyways, this morning I try to start it up and it won't start at first. It turns over, starter sounds fine and the dash lights go on, just no combustion. Then, on the 5th try I give it a little gas and it starts up, but it's chugging and I can tell it is going to die if I let off the throttle (full choke mind you). Well after about 5 seconds of this I hear a THURRPPP-TRICKLE-TRICKLE-TRICKLE and the bike dies.

I get off the bike and look down to see oil FLOWING out the back of the transmission, where the rubber accordian boot wraps around the driveshaft!



I took the picture after it stopped flowing.

Any ideas what happened here? It's not where I can work on it right now, but I'll post some updates as soon as I can get a friend to help me move it.

 

not good my friend, there's a o-ring and a seal in there that keep in the engine oil
not bad yet but the engine might have to come out to gain access, the swingarm is going to have to come off for sure
first, are you sure it's engine oil, not differential oil ?
is the engine oil over full ?(small bubble at the top of the window)
always check oil while on the center stand (lets hope this is it)
the rubber boot should have a drain in the bottom on the engine end, if it was plugged it may have been leaking a long time and just now came out
the swingarm might be full of oil

 

Pull the Boot back ... Off the Engine.
Use Kleenex or Paper Towels to wipe the area down.

Wipe the Back of the Engine down good and clean.
Put some Baby Powderr in the palm of your hand.
Blow it on the back of the Engine.

If the Rear Main Seal is Leaking you'll see a trail.
That Seal, back there, requires removing everything in the way.
What's in the way?
The whole rear end.

The whole rear end needs to come-off and be taken out of the way before you can service the Rear Seal.

 

Well I looked at it in pure daylight today and it seems the engine oil is gone. The glass is foggy and no movement is visible if I shake the bike. Sticking a dipstick through the oil cap yeilds no residue.

By the way, before I tried starting it the first time, I put a couple oz of seafoam in the 2/3 full gas tank. Now I've got a bit of a drip and perspiration around the far-right airbox>carb boot that looks like gas. 8O

I've got a guy coming with a trailer tomorrow to move it to a garage I can use. All I can think about is how this bike went from sweet deal to total scam. It's gonna be a long day.