Peter (psfred) hit it on the head!!! It was ATF that traveled down from the exhaust hanger to the exhaust itself and got burned there; especially the incline I mentioned actually had a little off camber to the right (USPS side) where the exhaust is.

Drained and refilled tranny with Valvoline Maxlife ATF with stop leak. Gone from few drops a day to virtually no drops for months now. Just did a fluid swap to Mobil1 synthetic ATF so I'm crossing my fingers hoping the leak does not return

Regards,
Frank.

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'86 560SEL | Silver Ext. / Blue Int. | 201K miles (Apr. 05) | 204K miles (Feb. 06)