First thing, get some genuine power steering return line for the car! Then head to the GM dealer parts dept and ask them for some power steering fluid for an older car (which should be opaque clear fluid). Then, after you drain the pump's fluid reservoir, refill with the new, clear fluid. That is the easiest way to deal with sudden, recurring, hard to stop power steering seeps, from my experiences over the years. Additionally, most fluid seeps (hoses, etc.) stop when the correct fluid is in the system. By observation, GM and Chrysler have spec'd power steering fluid for their systems since the earlier 1960s (GM started in 1961, I believe). Yet the "service industry" stated that to "top off", you could use normal ATF, but if you have a lead and the system is continually topped-off with ATF, suddenly you have a system full of ATF, which the rubber in the system was not designed to work with, for any length of time.
NOW, behind that little nipple is the "centering adjustment" for the steering gear. Might seem like a minor deal, but if that nipple is removed (to replace the seals behind it), THEN you have to go through the procedure to re-set the adjustment, which can be time-consuming. Read the FSM for that information.
Change the hose, clean the area of the nipple where the hose attaches. slide the new hose onto the nipple. Notice where the bulge for the end of the nipple is. Place the hose clamp just in front of it by about 1/32" or so, tighten the clamp carefully. Refill the pump with the correct fluid and check for leaks. Might need to empty the reservoir a few times to get bulk of the red fluid out of the system.
See how that goes,
CBODY67
