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B20 A/B engine green book #2 page 24 gives details of fitting the seal. Shows a Volvo special tool for centring which is important regardless of whether you use the felt or neoprene lip seal. Felt seal described in this section. Nothing wrong with fitting a new felt seal. It will accommodate a small amount of misalignment compared to the lip seal and will seal better if the crankshaft surface has been scored by grit. A poor surface can destroy a lip seal after not many miles and you are back to square one. Felt seals last a long time if they are used where the oil is clean and the engine is used enough to allow them to stay wet. Engines that have been unused for years will often leak because they are dried out but can, if you are lucky, revive themselves after new oil gets around the rear main bearing. New felt seals are cheap. Soak in engine oil overnight and then squeeze out excess before fitting. I've no statistics but fro comments from forums and by personal friends fitting new lips seals is less likely to cure the leaks than a new felt one. With the lip seal this may be down to poor centring and damage to the seal when fitting. As said, the felt seal is reasonably foolproof and easy to fit.
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