Bruce, that was just my lousy way of expressing the point. Of course, the old seal was leaking and must be replaced. I suspect it leaked because the dirt that formed that hard ring, found its way under the seal lip. Then it ate the lip, and part of the shaft as well. Seals that wear out due to dirt usually erode the shaft, in my experience. My usual solution is to position the new seal inward or outward slightly, so the lip of the new seal is not running in the groove in the shaft worn by the old seal. In this case there is a step in the shaft right in the crucial area, so there might or might not be enough room to move the seal. The only real alternative, if there is a groove worn in the shaft and you can't move the seal, is to replace the crankshaft.
