banana- get a second opinion on the pan leak. 94-97 PSD's had a TSB on the from cylinder head passage end plugs. The design was bad and they leaked. its a 50 cent oring fix.
the SEALANT for the pan is aenerobic (?sp) and iirc with the motor upside down, the procedure is to clean the mating surfaces, apply sealant and let cure for 24 hours. i kid you not!
does it leak when the engine is running or well after shutdown. if it leaks while its running, look at the O-ring sealing the steel high-pressure lines coming off the pump at each end.
<shamelssly stolen form another page>
Remember, the Powerstroke uses a separate high-pressure oil pump to operate the injectors. This oil pump has steel oil lines leading from the pump to each head, and an oil return line from each head back to the pump. International designed the block casting with a drain hole in the right side rear of the valley -- and this drain hole empties into a cast runnel (channel), which leads to another casting hole located (you guessed it) just above the right corner of the oil pan. With the engine running, the windage from the flywheel made the oil look just like it was squirting straight out of the corner of the oil pan. <end theivery>
bottom line is, make doubly sure that the pan is leaking. if it is, then so be it. if its not, you are gonna save a bunch of dough and lost sleep if its not.