The steering rack on my '77 XJ12 was replaced by PO and has very few miles on it. The car steers fine but the rack seeps oil from the adjusting screw area. This rack has a plate bolted to the rack that holds the screw and large lock nut. Oil constantally seeps out of this area. Is the rack and pinion area of the rack under system pressure or is it a sealed off area? If sealed off, is there oil in there to lube the gears? The oil seeping out seems to be different type than system oil.

It would be a Lot easier to know exactly what your problem is if we had a picture of the effected area. Even a phone pic would do.

Over 200 people have looked, some doubtless familiar with leaky racks. But without a picture, who knows what to tell you?!
(';')

That screw and locknut are for the "Plastic" pad that bears on the rack shaft.

It is spring loaded, and is in what is known as the "dry area".

There should be a grease fiting hearby, OR a plug where a grease fitting will fit, and a few pumps of the gun every year or so is all that is needed.

If the oil looks different to what the pressure system is running, there may be many reasons for that:
1) The system fluid is leaking into that area, mixing with the grease, and now looks different.
2) Someone filled that area with oil, near on impossible in my opinion, as "up hill" is always a battle with oil.
3) The pinion seal, on top of the tower (pinion) is weeping (it is under pressure), dribbling down the tower, mixing with muck in the area, and dropping OFF that screw.

Is the system fluid level dropping at all??.

Grant! That's who!
I should have known!

I'll go sit in the corner quietly now.
(';')

HAHAHAHA.

I just got out of the door innards of an X300 (my old car) that refused to do what it should with the remote lock/unlock thingy.

Chafed wire eventually found due to the window regulator rubbing on it, as they do.

Now I need to sit and consume some settling necta.

I'll have 2 for you Elinor, and 3 for me, always fun.

Simple cars for us simple folk.