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No...the felt seals ain't that bad if you have a good engine. The felt seal really isn't much of a seal...it's more of just a oil catcher. Put there to slow the outward flow of oil enough such that the oil falls back down inside the engine rather than out the back. But, if your engine is worn (or not perfectly rebuilt), or you have a clogged crankcase breather, you can get crankcase pressure (blowby). It is usually that that forces the oil out the rear felt seal. The newer neoprene seal design will solve that problem as it actually provides an airtight seal through which no oil can flow.
Yes....if you have your engine out, and especially if you have the flywheel off, upgrade the rear seal. Unless, of course, you live in a rental house and don't care about oil spots from time to time....
But its a bit of a pain even with the engine in the car. Were I you, I'd do the upgrade. Keep in mind, you don't have to go to IPD. If you find a '74 or '75 B20(or somewheres around there), it will already have the neoprene seal housing...and that housing will bolt up to any B18 (I think) or B20 to replace the felt housing. And yes, all that the other folks said detailing centering and gaskets is true...but if you engine is out, now is the time to do it...
-Matt
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