I have done the seals both ways. On the tractor I restored, the axels had been cut with a torch so it would fit through the gates. When I replaced the axels I replaced both the inner and outer seals, both had deep grooves. On the inner the seal can be moved to run on a new surface. Not so on the outer. Looked to far to push a sleeve so I built it up with JB weld. So far so good. On the tractor I use (not pretty at all ) I took the short cut and just replaced the outer. Had to add more oil but so far it seems to be holding (two years now). The gaskets and bolts on the housing are seeping but no major leaks.
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