If you wash it off and it never comes back it's probably cosmoline so don't worry about it. If it comes back you will have to replace the seal. The seal is cheap and can be replace {by you if you've ever installed a seal before} in about an hour or less.
Here is the post I made after I fixed mine.
It's a long story but here go's. At around 3000 miles I noticed a small spot of oil on my garage floor. At first I thought it was chain oil so I watched it carefully. It kept leaking so I pulled the chrome sprocket cover off that I had installed when I bought the bike. As I pulled the bottom bolt out I found oil on the threads. I pulled the rest out and only 3 had oil on them so I looked around the cases and saw oil on the gear shift mechanism cover. I looked at the sprocket and couldn't tell if the oil was coming from there so I decided to get another gasket for the cover. I was going to have to wait 2 weeks for the gasket to arrive so I decided to get out my smallest ball peen hammer and make my own while I waited for the new one I changed the oil and filter at the same time since I was getting into it. I had to pull the sprocket off to access the cover and I could see a little oil up around that area but nothing obvious. I pulled the cover and made the gasket [ Why I am working on a brand new motorcycle I'll never know }. I put some gasket cement on the case and cover then installed it. I put it all back together late at night so I thought I'd see if it leaked on my way to work. It did. I pulled the sprocket cover and the sprocket then started the engine and watched the oil literally run out of the output shaft seal. I noticed small spots of rust on the spacer and wiped them off. Small pitt's from the rust were left on the shaft so I figured I had found my culprit. Soooo I put it all back together { I might add the bolt that shares the sprocket cover and the gear shift change mechanism cover was still getting wet with oil} and called the dealer. Made an appointment 2 weeks away and told them my trouble. They said it would be covered on the warranty. In the mean time the new gasket came. Again I pulled it all apart cleaned all the gasket cement off and installed the new gasket onto the clean surfaces of the gearshift change mechanism cover { tranny cover would have been shorter } and tightened it up. Whew!! all fixed. Now I just have to take it to the dealer 100 miles away and hope they can fix it while I am there. I'm beginning to call my beautiful bike names by now but I did it to myself. The dealer told me not to ride the bike like that so I had to find a way to get it on my pick up truck. The bike was so dirty I was afraid the mechanics would scratch the paint so I washed it the night before. Four guys a fold up table and 3/4 inch plywood and I was on my way. Left at 5:00am to beat the Bay area traffic and got there 1/2 hour early { good deal 2nd person in line}. I dropped it off and kicked around until 2:00pm. Walked up to the rep and the rep say bad news { oh no I thought , they have to order parts} "we can't find any leaks at all" { eye's are getting really big at this point}. I yell "WHAT" rep says " Our mechanic can't find any leaks on your bike". My ears are steaming and my face is blue especially after spending more money on the fuel to get there than it cost's for the seal. " I want to talk to the mechanic". Rep " Let me get my manager" The rep needed to get away from me or it was going to get ugly. We got to the mechanic and he tried finding the leak with a black light and some dye in the oil. They added more oil of a different type to my existing synthetic to try and get it to leak { all I can tell you is it only does it when it's full, I know, it's a closed system and it shouldn't make a difference but it does believe me }. He was trying to see behind the sprocket and I said " You won't be able to see it with the sprocket on ". He said " Well how did you see it". I said " I pulled the sprocket off ". DUH!!! They told me they had seen oil leaks coming out of the splines on the shaft but never out of the seal and they had put silicone into the splines to fix it. {I'll bet those shafts never came back in because they went to a better shop later on }. I won't go into the rest but they finally agreed it was the seal leaking and they did have to order the part. I called back 4 day's later and they had the seal. They wanted me to bring it back. I said "No". They said well we can tell your not some fly by night mechanic so how about we send you the seal and you repair it on the warranty. "Yes please send me the seal" I didn't want their fly by night mechanic touching my bike. I pulled the old seal out and found small pitt's of rust along the shaft{ spacer on the shaft that the seal rides on } so I pulled out the dremmel tool and polished out all the pitt's on the shaft . The seal was a little slippery but I got it in real straight changed out their oil and no more leak. OK cut it off. This post is way to long as it is. Well there's my fix and I'll stand by it.
[ This message was edited by: Bryan on 2006-04-03 23:24 ]
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