I went to a BMW driving school last year at Nelson Ledges Race Course. Had a lot of fun beating up on a lot of BMW's who couldn't believe how fast a '99 Contour SE can go. Anyway I had a problem with the power steering fluid splashing out of the reservoir. I could see the fluid on the outside of the reservoir and running down the engine compartment. About a month later the alternator failed and the mechanic said that there was some kind of oil all over the alternator. At the time I thought the spillage was because there is no gasket on the cap. Now I look and I see that there is an O-ring that is supposed to seal the cap and prevent fluid from splashing out when you go through corners. I took the cap off and inspected the o-ring and everything looks good. When I put the cap on I can feel the o-ring being pushed into the neck of the reservoir. From what I can see this design should prevent power steering fluid from escaping the reservoir. I guess if I had to I could cut a gasket to go under the cap for insurance. Has anyone ever had this problem before?
