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This will help, I think. This is the link for the workshop manual.
http://www.strath.ac.uk/media/depart...hop_Manual.pdf
You have almost certainly worn out the oil seal on the hand-crank shaft.
I have not had to tackle that one before, but my guess is that you will have to take that cover off to get to it. Also, it looks like you will have to drift out that engagement pin that the starter crank engages with.
The rest should not be too difficult.
It looks like your fuel filter will have to come off (that hand-grenade sized thing in the middle of the frame), and your fuel pump too (that wee top-hat thing on the right). They should come off fairly easily. Just push the fuel lines out of the way and tie them off.
Then take the cover off.
A crucial warning though. Before you take the cover off, tape a white plastic bag into position below the cover to catch anything that may fall out of there. Don't let anything fall into the bilge. Don't lever the cover off. Use a mallet to loosen it.
When the cover comes off, it should be apparent where the leak is.
Take the seal out and clean it up. You are very likely to see three numbers on it, like, (and I am guessing) 50 x 30 x 20 (or something). They are the OD, ID and thickness of the seal. There are many good manufacturers that can supply.
Don't buy Volvo seals. They are far too expensive. Go to the net and order two or three of what you need, and keep them in a drawer. Last time I bought a volvo seal it was 14 timesmore expensive than at my local supplier, and it was the same dimension.
Have a look at the shaft to see if it is corrossion-pitted along the seal circumference. The new seal will leak too if that is the case. Sometimes it is possible to knock the new seal deeper into the seal recess, so bringing the new seal lip onto an uncorroded part of tha shaft.
You could try a double-lipped seal too, if you wish.
They are not expensive.
For the cover gasket, you may find, as I have, that old chart paper is an excellent gasket. Use some sealant too if the surfaces are marked. Place your gasket paper over the cover you remove, and use a toffeee hammer to beat out the outline. It works well.
Rockter.