Gil - I had the same "oh crap" moment shortly after I joined this forum. The hydraulic pump manufactured by Lippert (LCI) has a long ugly history. There is a $3 seal around the pump end of the motor that leaks and allows the hydraulic oil to saturate the motor, which eventually fails. On my coach my first real problem came when I tried to extend the genset - it worked but the motor sounded like it was struggling. Now it sounds that way whenever I operate house slides or the genset slide. It's because of the oil in the motor, and I know it's going to quit soon.
The thread "Lippert Seal Replacement" in the Monaco Owners forum is a great one. http://www.irv2.com/forums/f115/lipp...ent-60352.html
From what I've found on the forums, many owners were told that LCI would not honor the warranty since Monaco went bust. Several paid the replacement cost ($1,300 or more) out of pocket, and others complained to NHTSA. Their ground breaking actions (THANK YOU!!) now have LCI in a position where they will cover replacement. I called them last week, got a reference case number, sent them a picture of the unit so they could determine the correct part number, and they are working with a local RV shop to send out the replacement pump. I believe they also cover 4 hours labor to do the replacement.
Anyway, if you have ANY signs of leakage around that pump - particularly the motor end rubber cap (for manual operation with a drill) then your seal has started to fail. Call LCI before they change their minds.....