Join Date: Jan 2010
Location: Clintonville, WI
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It probably isn't a rear main seal leak. It is most likely the pedestal o-rings or the exhaust back pressure valve leaking. The oil then runs down the back making it look like the rear main seal.
$4000 sounds like way too much for the kind of problems you say it has, especially if it isn't 4wd; No first gear, original clutch, bad power steering box. I wouldn't pay more than $2000, since the tranny needs rebuilt or replaced, the clutch will need to be replaced in the near future, and the power steering box needs to be replaced.
1996 F350 Crew Cab Long Box
7.3L Powerstroke, E4OD Auto
Banks Intercooler, Banks Quick-Spool Turbo, NAPA 6637 Air Filter, 4" Diamond Eye SS Turbo back exhaust
Bumper Dude Front and Rear replacement Bumpers
Future Mods: PHP FU chip, Gauges