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Diff Output Shaft Seal - Seating Depth?


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I have a question for the collective expertise on this forum. This year I bought an E21 3.91 LSD to put in my 2002. I sent my output flanges off to IE as cores and got a pair that's drilled for 8mm hardware and spacers so I can use my recently refreshed 2002 half-shafts.


Since I had the output flanges out, I decided to replace the output shaft seals. The seals were more-or-less flush with the outside of the differential case (see fist picture.) Not watching the depth, I drove the new seals in with a bearing/race driver, and they seated approx .165" deeper that the ones I took out. In the second and third pictures you can clearly see the "lip" above the seals. So, have I driven the new seals in too deep?


I noticed on other BMW forums there is discussion about seal seating depth (says to mark your seals and seat new ones to the same depth), but this seems to be discussing later models/ M3s.














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