Yes it's between engine and tranny. I started it up today, let it warm up and at idle, you can see air bubbles blowing through the seal.. I am sure it is probably worse at higher engine rpms.
2014 F25 X3 M-Sport Carbon Black, Technology/Premium/Winter/Driver Assistance
2011 e92 335is DCT - Cobb, ETS IC, AFE DCI, BMW PS kit, M3 control arms, various cosmetic improvements RETIRED!
2007 X3 RETIRED!
2006 e90 330i 132k miles RETIRED!