Tx Jim,If your 2040 has a 3 cyl engine is serial # below or above 266,750? Below has open-center hyd's & above has closed-center hyd's. Where exactly is it leaking? It sounds as if it's leaking at gasket where valve housing bolts to clutch housing? If so it's possible hyd oil return galley is clogged. Are the attaching bolts tight?