It is as you suggested inner seal is bad. I've not been able to locate new axle flange seals. Mine appears to be aluminum and I don't have a mic to gage thickness. If I'm unable to locate new ones, I was thinking of fabricating new ones from an aluminum can. What ya think do able or not. Oh! An ole wrench bender told me I could even make one from thick magazine cover stock, this I'm not to sure of.