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Welcome to Triumphrat.net, I have found a lot of good information on my Daytona on here. I have an 03 955i that had the same problem, and its not too hard to fix.
Take the plastic front sprocket cover off and loosen the chain, you should be able to take the chain off the front sprocket and support it with some wire ties so you dont have to take it all the way off. Then take the nut off of the front sprocket, make sure you bend back the washer behind it first. The oil seal should be right behind it. Take two self-tapping metal screws and drill them into opposite sides of the seal, and then grab them with pliers and pull, the seal should come out. Do NOT drill the screws in very deep, just enough to grab the seal, look at the new seal before you put it in and you should be able to tell how far you can drill. If there is any dirt or corrosion around the lip were the seal sets, clean it off. Put oil on the seal that goes around the output shaft, then seat the new seal with a socket or something that is round and the same size as the seal. Torque the nut to the specifications in the manual and rebend or get a new lock washer. Put the chain on and tighten to specs.
Put the front sprocket guard back on and you are done. This should fix it as long as the seal just wore out, if the output shaft is scratched its just going to keep eating seals.
Its been a while since I have done mine, I think I got the steps right. If you have a powersports(fourwheelers, dirt bikes....) parts dealer near you, check with them for a seal, I got mine from a place near me for $4, where the triumph seal was $15 and took three weeks to get here. Search the Daytona Deliberations forum, I found a post that had more information on this and also had the size of the seal in it and also had the size of the socket required to get the output shaft nut off.
Hope that helps.
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