Hole under axle seal? normal?

[nate.184]

hi all
been lurking for awhile... first post cuz i need your help.

i recently bought a 2001 celica gts. I replaced the clutch and it started driving weird after a couple days... seemed like it had no power, didnt shift smooth, etc.

i found a leak coming from the left axle (id lost near a quart of gear fluid) and figured it was the axle seal so i begun to change it. once i took it all apart i found a small hole where the axle inserts that was being covered by the seal.

the hole is very smooth and doesnt seem like something just broke off.
is this the cause of my leak? or is this normal?

see pictures here
http://slo.craigslist.org/wan/1968631206.html

if this is the problem... WTF do i do?

[Rick89GTS]

Doesn't look like something broke off but I can't tell for sure from the pic. My guess is that slot is there for you to insert a prybar to help remove the axle. The axle is the flange type and not bolted in, right? Do both side have that cut out notch?