It seems like original transmission bearings weren't sealed so the transmission oil leaking past the bearings combined with the grease that was pumped into the U-Joint housing did the trick. With a rebuilt transmission and new sealed bearings you won't get the oil leaking past the bearings anymore so lubrication would depend on whatever is in the U-Joint housing.
I have a rebuilt transmission with sealed bearings. I recently cleaned my U-Joint, replaced the felt seal and filled the entire cavity with John Deere Cornhead Grease (NLGI grade 0) as recommended in other threads on this site, and I now find it leaks out. I'm not sure that Cornhead Grease is thick enough. When I replenish any that leaks out I plan on using John Deere Multi-Purpose SD Polyurea Grease (NLGI Grade 2). I figure it should be ok to mix because they are both a Polyurea type of grease.