Yup, That doesnt look too bad....
When I fitted mine, I used a large diameter hammer-handle and my full weight to 'roll' the thing into the groove--Its a lot stronger than it looks....
Note, Dont 'rub' it, Roll the weight over the seal to force it into the groove.
Leave 1mm standing proud when trimming off....
When rear bearing is assembled, the engine will appear quite tight to turn until this seal beds to the shaft, Use LOTS of oil over it when fitting crank and bearing cap.....
The bedding in happens after the first few seconds of running...
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http://i190.photobucket.com/albums/z...0TDnoplate.jpg
Alastair AKA H.C.II South Wales, U.K. based member
W123, 1985 300TD Wagon, 256K,
-Most recent M.B. purchase, Cost-a-plenty, Gulps BioDiesel extravagantly, and I love it like an old dog.
W114, 1975 280E Custard Yellow,
-Great above decks

needs chassis welding--Really will do it this year....