BAD SIGNS?

1. There is a 3/8" diameter hole in the engine block (housing) about one inch back from where the starter bolts to the housing. When the engine is running and the transmissin is in neutral I can see a lot of sparks inside of this housing. It looks like a fireworks display. Is this unusual? Is it a sign of a possible problem? What is the purpose of the hole? I recently replaced the starter drive.

2. I changed my hydraulic fluid for the first time. The stuff that I drained out was the color of muddy water. Is this typical?

Any advice or comments would be greatly appreciated. Thanks.

And NO, you shouldn't have sparks grinding away inside yer tranny housing. Theres something drastically WRONG with your starter bendix and iff'n ya don't find out why, yer gonna be buying a NEW STARTER MOTOR ($150)

And NO, your tranny oil should be a clear light brown fluid. Chockalate milk lookin' fluid is caused by WATER. Check yer tranny shifter rubber boot ($3 cheap)..... ....respectfully, Dell