How in the heck do I seat the new bearing all the way into the rubber bushing? Ive tried soapy water solution, persuading with a wood block but I cannot get the bearing all the way down?

What is the trick?

You use a two legged puller to install it.
The tool shown in step 4 of FSM Job 41-100.

__________________
78 W116 300SD 'Desert Rose' new as of 01/26/2014
79 W116 300SD 'Stormcloud' RIP 04/11/2022