Maybe try this link, http://www.ssbtractor.com/wwwboard/messages8/ or http://www.ssbtractor.com/wwwboard/view_all.cgi?bd=lawn&msg=31201

Bump. Really need some advice here, thx.

rustee, Those were 2 useless links. What's the point?

Advice #1 Looking at picture #4 in your album, it appears that the cooling fan sitting atop the transaxle input pulley........is not resting level with the pulley, and almost appears as though it is not even centered with the pulley. This could mean that the cooling fan is not fuctioning to cool the transaxle, allowing it to heat up and foam the oil, eventually pushing the oil foam out the vent hose.
Advice #2 If your trans oil is very old, it is worn out and deteriorated. This increases the likelihood that the oil will foam, with or without severe overheating. But once the oil begins to foam, it will forever after foam during operation because the oil has lost its additive package due to heat, moisture, and age.
And you may also have too much oil in the transaxle.

Thanks, Mownie. I noticed the fan as well, it's old, and upon removal, I noticed it was installed slightly askew, and the washer holding it down had compressed the opening warping it a bit. It spins, but with a bit of a waggle. I've ordered a new fan and vent cap from Craftsman. I will plan on installing asap. Question: I am borrowing an oil pump from a friend w/the hopes of removing as much transaxle oil as possible and refilling. What type of oil should I use to refill? This transaxle is "non-serviceable" so there's no drain plug nor listing in the manual for oil to refill with...

By now I'm sure you have learned that the preferred oil is 20W50. 81 oz. to fill your tranny. Some HydroGear transaxles have a check plug on the side of the case. If you can find this and remove it, it will be easier to get the oil to enter the trans through the vent hose. You can put a long plastic funnel into the vent hose and pour the oil into the funnel. Pour slowly because you want to stop adding oil when the oil gets the check hole.