Hey Teaz...first off, please turn off the "CAPS LOCK" as it is hard to read and considered shouting.
First off, I don't recommend riding the bike if the fork seal is leaking that badly. You can do damage to the internals (see: $$$$).
If you absolutely MUST ride, then try cleaning the seal at least. The trouble is, without draining the old oil, you'll have no idea how much is still in there, so yes, it's better to drain it all and refill with new fluid.
I used M1 ATF in my 2000 CR250 without any problems. It works quite well. It is slightly heavier in weight than the standard 5wt that is stock, so you'll probably find you have to back the clickers out a click or two to compensate.