Technical 700R4 fluid level?

I recently bought a car that has a 700R4 in it. It was leaking fluid out of the governor and speedometer housings. When I popped the speedo housing to change the o-ring about a gallon of fluid poured out. The level was correct on the stick beforehand. Should that much oil have poured out? Does anyone know where the fluid level is actually supposed to be? I'm not rulling out that the dipstick is incorrect...

 

That is not that unusual, when the torque converter drain down the fluid level will go up.

 

Like Saltflats said, if it has been sitting the converter will drain back. That still seems like a lot of oil to come out of the governor cover. Assuming it is somewhat level. Had it been started and shut off you would get very little out of there. Fluid level should be about a 1/4 below the top of the dipstick tube hole in the case when running.

 

I learnt with my T700 not to trust dipsticks.
Rebuilt T700 purchased in CO and aftermarket dipstick from eBay.
Installed tranny into new project and it would not drive properly, added more oil than the dipstick suggested, would drive but terrible noise from 1st to 2nd change.
Asked a tranny guy for advice and he said keep adding oil until she runs and goes quietly.
He was right and not a trouble after that.
I remarked my dip stick to reflect what worked...