I think this is the winning answer. This tractor has been here for 30 years, engine rebuilt right after it got here. Granted, it hasn't been used hard, but the rear main was not the primary reason to split it either. In fact, the evidence on the back of the block and on the flywheel makes me wonder if it was leaking at all. Except for the education, I think I'm sorry I pulled the seal retainer.
It appears there's two issues at play here, the felt seal as compared to more modern lip seals, and the mating surface of the seal retainer to the engine block. I believe the felt seal was good enough, and I hope I can properly install a new one. I also believe in modern RTV sealants and their ability to help stop the oil at the mating surfaces.
This forum is a great resource. I'm a few days away from reassembly so other opinions are welcome, but I think I know what I'm going to do now. Thanks to all.
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Today's Featured Article - Identifying Tractor Noises - by Curtis Von Fange. Listening To Your Tractor : Part 3 - In this series we are continuing to learn the fine art of listening to our tractor in hopes of keeping it running longer. One particularly important facet is to hear and identify the particular noises that our
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