Posted: Sun Apr 11, 2004 5:20 am
oil+water=grey 
Cannondaleriders
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Posted: Sun Apr 11, 2004 6:00 am
Depends on what color the oil started as
Posted: Mon Apr 12, 2004 2:43 am
What type of Honda transmission oil are you running? It sounds like you may not be running the right oil. Is there a visc rating? It should be in the 80W to 90W range (but do not use hypoid in this range). I've never seen factory Honda trans oil red in color for this application. The oil is exactly what would go in a 2 stroke motor / trans, since the engine oil is mixed with the gas or injected from a seperate tank. Rath may be right, change the oil with the above, and try riding, before you tear it down.
Posted: Mon Apr 12, 2004 12:13 pm
I run the same Honda oil as well as one of my buddies in his dale. It will turn a light pink if water gets in it. My buddy found that out on his first ride. Change the oil and take it for a light ride. See if the level in the tranny changes. If it does you could some loose bolts in the tranny.