The oil seals definitely blew. The right ones was leaking and wouldn't hold air. Then the next day, the left one did the same thing. It was a bouncy ride home. Those instructions on replacing the seals are the same ones that came with the seals but the tech support guy said that was wrong and I should have put 6 oz on instead of 2 oz. I searched high and low, and as you can see, there is no definitive answer. The 416 series must come in many sizes and flavors. I read in a Harley forum that a guy puts 11 oz. in his.
I was referring to your rebuild with new seals, that they are still leaking.
u talked to the wrong tech person. progressive over the yrs always stated max 3 oz per shock.
oil level affects the air chamber left in the shock. As you know, oil doesn't really compress (much) under pressure, but air can be compressed quite well. So, when you hit a bump, the shocks compress, and in addition to all the other suspension and damping stuff going on, the volume of air inside is compressed, acting as an additional "spring". This happens most noticeably at the end of the suspension stroke as compressing air gets progressively harder. only problem is air compressing is not linear like oil.