Sludge on engine wall near transmission

[MC2]

Hi Folks.

I have a 1996 Subaru Legacy L purchased about a year ago and so far I've had 15k relatively trouble free miles.

I recently developed a knocking sound on cold start, and it's definitely a knocking not a ticking. I was trying to diagnose the knocking sound and it almost sounded as if it were coming from the transmission.. I was listening around down there from the passenger side when i noticed a whole lot of black sludge on the engine wall. It's on the engine wall on the passenger side above the transmission.

I tried to look around and couldn't tell where it was coming from. The transmission oil level was F and i couldn't see any other signs near by of oil leaking.. plus i' imagine something would have to splash it up to get to the wall there. The transmission had no signs of oil on it anywhere..

Any ideas where that might be coming from?

[Huffer]

Wipe it off. Drive for 100miles. Stop, check area to see if it's clean or dirty. If clean, don't worry about it.

[Brockley]

mine had lots of oil there..

most subarus before 98 have a plastic Cover over the Oil Separator. After 98, they change it to metal. The Part from my dealer cost $9, and to replace it, I had to pull the Tranny back... when I got that apart, the flywheel and everything was covered in sludge..

[MoclovFlop]

Not sure about the knock, but check for a torn inner CV boot, it would fling dark grease in that area. Probably not it but worth a shot.

[MC2]

Thanks.

CV boot looks good still with no tears.

I'll try to wipe it off and see if it comes back or not