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A common problem that is easy to repair is oil leaking from the pinion. A new seal can be installed, but if the seal surface is worn or rough, in most cases will continue to leak.
The solution to the problem is to install a Speedi-sleeve available at most automotive parts stores. The part number for a speedi-sleeve brand name CR (Chicago Rawhide) is 99155 for 1955/56 models and 99181 for a 1957 model. The kit comes with an installation tool as well as easy to follow instructions. Removal and replacement of the flange (FoMoCo P/N 4851) from the differential can be accomplished by following the appropriate year shop manual.