Motorcycle Repair: 78 FXE Shovelhead, wet clutch, clutch basket

Question
QUESTION: I just purchased a 78 shovelhead last weekend and rode it home. I noticed a lot of oil leaking from the left side drive case. I put it on a lift today, removed the drive case cover and a lot of oil came running out onto my shop floor. I have a service manual and from what I can tell reading the manual oil should not be in this area (since it has gotten into the clutch and was causing it to slip)
Where do you think the oil came from?
It had a strong gas smell to it and I have been leaving the gas turn on. Could the gas have leaked into the crank case causing the oil to become thin enough to leak out to the drive case?
What action should I take with clutch?

ANSWER: Your bike has a wet clutch.It will have oil in the primary side this is ok,the gas smell is not. The reason that you smell gas in the primary oil is that the seal behind the engine sprocket is bad.Also the carb is leaking into the engine going past the rings and pooling in the bottom of the engine.If you smell the oil in the oil tank it will also smell of gas.Change the seal and all the fluids.as for your clutch slipping that is not the oil but the clutch itself. You will need to replace the fibers and the steels and you will have a good clutch again.As long as you are this far I would also check the bearing on the back of the clutch basket.Also check the adjustment on the clutch.A VERY good idea is go to your local Harley dealer and by a service AND parts manual for your bike.refurred to as the holy bible.

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QUESTION: Thanks for the information I do have a service mamual but could not find this information in it.
The clutch was grabing or pulling when I had the level depressed all the way and it does not want to go into first gear with out grinding really bad, I away go into second gear then down into first. Would replacing the fiber for the clutch correct this problem?
I have been reading on line about clutch tamer, should I install one on this bike?
How much oil should be in the primary side?
Thanks again

Answer
the clutch is dragging do to adjustment adjust you clutch as per service manual.I would replace the fibers AND steels the steels will get warped with heat causing the clutch to drag. Save your money on the tamer. If the clutch is working properly you wont need it. Check your service manual I think it about a quart.