[ImperialCrown]

If it is 6 months old, would the parts warranty (usually 1 year) cover this 'defect'?
I have noticed the collapsed boot appearance on some right, inner CV joints and don't know of any service to repair the condition except to remove a boot clamp and let the internal pressures equalize with atmospheric pressure.
There is probably sufficient grease inside the joint and I don't think that the collapsed boot is going to really affect the joint life as long as the boot protects the joint and holds grease. Keep an eye on it at every oil change for now?
The axle would have to come out to replace the axle oil seal. It may not be a severe leak, but will lose fluid over time.

 

[Oklahoma Wolf]

The axle seal may stop leaking after a while... saw that with my 1991 Fifth Avenue parts car. The transmission had been rebuilt but they left the axle seals alone. Over the next two years, it leaked out about a liter of fluid from both sides before the dripping stopped entirely. It was about another year from that point until I bought the car and swapped the tranny into my Imperial.

I replaced the seals at that time just to be safe. It's not too hard on the passenger side (you can pry it out with a screwdriver), but the driver's side made me glad for my new seal puller set. Hasn't leaked a drop from anywhere since. If yours is a slow leak, it may be ok until the next time you need to pull the axle for something. Just keep an eye on the fluid level. But I'd still replace the seal next time I had a good excuse.

 

[Honolulu-Hack]

Thanks for the replies. Dont seem to have any problems with the axle, but still dont understand whats causing it to do this. The boot seems twisted also, torgued along the shaft, like wringing a towel. Somehow the pressure inside the boot is dropping. Cant be the temp cuz its 85-90 here now.