Mine was dripping from the tranny too. Changed out the rear main gaskets, the front gaskets, the valve cover gasket, etc. Then they used a dye and with the valve cover off discovered the leak. The 7mge and 7mgte have a problem with their head gaskets. After an overhaul and a rebuilt head, mine does not leak at all.
Not sure how mine found its way there but it did.
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1986 Mk III MA70 7MGE Targa Top 5 Speed Stock Exhaust 
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