It does not have any washers on the locknut

 

I will agree with Roge.. They need some type of sealant on the threads.. I is kinda a given.. It is just a threaded hole, so oil will makes it way through.. But not sure why you have DRIP..

 

For the people who may stumble upon this thread in the future:
-the stock full level is 5/8"--1 5/8" below the stock fill hole.
-the cover bolts that you need are metric, you will have to specify this when ordering or you will be sent standard thread bolts.

The pipe thread sealant suggestion sounds like the best thing.

 

I sealed mine with teflon tape and they stopped leaking but the gasket that came with the cover blew out on the sides by the carrier bearing oil feed holes. (vent is good and not clogged) Got a factory gasket and sealed with teflon tape and it was good for a few months, then the preload bolts started leaking again. Now I just hit it with a shot of brakleen occassionally I figure that I'll deal with it when I can afford to do gears and a trutrac.