You are right, they supposed that it looked like a banjo, hence the moniker.
Serious! But then these are the people who call a dashboard or instrument
panel a Facia. That only makes sense when you crash the car, as in "... my
head slammed forward and I hit the dash, injuring my Facia." (sorry) :-)
Have you checked to see if the oil breather hole on the top of the rear end
housing is clogged? If it is, pressure inside could force oil through an
otherwise O.K. seal. Otherwise, I think the front seal is worth looking at.
Good Luck
"...projects like this are the punishment for tampering with the playtoys of
the Gods..."
Johnmowog
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