Apparently, the most common loss of oil from the hydraulics is into the differential because of a bad hose or leaking cylinder. However, I am having the same problem you describe and it is apparently due to a bad seal between the 2 compartments. My problem is most noticeable when I use the tractor in the woods where I have very steep log roads. I assume that when going down steep grades the oil migrates from the hydraulics compartment to the PD compartment much more readily. Mine is a Series II and I was told that later series tractors do not have that seal and the oil flows freely between the two compartments. My experience is that the hydraulics compartment will empty into the PD compartment to the point of causing it to overflow. I have to drain from it and refill the other periodically which is a PITA but much less so than splitting the tractor.
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