The flange that the seal goes in does not fit up against the housing. There is a thick cork gasket between them. The flange goes on far enough to lock in the brg. The distance is determined
by the shims. The gasket compresses to fill the gap. The gasket never is good enough to reuse. Its best to get a new one but it could be done with RTV.
Have you checked the brg.? It should not have any up-down motion. There is no crush sleeve on this brg. There is a solid spacer between them. The flange nut should be very tight, about 200 foot lbs. Then tighten more to line up the cotter pin hole. As said before the grease fills to the bottom of the fill hole. I have seen the cover put on upside down & the rear end filled way over full. It is usually about level with the bottom of the tubes.
George
