The felt you have heard about is in the steering pivot area (T joint housing) and acts as a dust seal for the oil seals inside. (the part that rotates when you steer right or left). It sounds like you may have a bad axle oil seal. I would pick up the front end and make sure you dont have a loose bearing by seeing if there is any wobble in the wheel, this can make the seal leak and would be a more serious problem. If the wheel does not have excessive play, youmight clean the oil and see how bad the leak is. If you are under warranty, you probably would want to get it fixed, depending on your access to yoru dealer.