Hey, Squiggie! I'm the one who had the recent trouble with the Febi rear seal. It took me 11 tries, all kinds of goofy (unsuccessful) on-the-fly techniques, and buggered trim to finally convince me it just wasn't right. I can be pretty stubborn. And yes, the OEM seal went in on the first try and looks fine.
The problems you are having are exactly the ones I had. Have your roommate give it a try (or 11) and see what conclusion he comes to.
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1981 300TD 310k miles
1970 280sel 172k miles
1966 230 Fintail 162k miles
"Where are we going? And why am I in this hand basket?"
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