Steve, When you have a bad seal on the hydraulic pump input shaft, Hy-Tran fluid leaks past the seal into the engine crankcase. I had that problem on a SA several years ago, engine oil level rising, hydraulic fluid disappearing from the unit. Put in new hydraulic pump seal, problem solved. Not a complicated job (if I can do it).
If you drained and installed new fluid, you may have had air trapped in the system while filling and after the air was purged by operating the lifts the fluid level may have dropped to replace air pockets. Proper fluid level is to the bottom of the fill plug opening, but I guess you knew that. Be careful taking the fill plug out - sometimes there can be air pressure behind it.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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