The seal, #34 only seals the OD of the spacer, #35. Oil can creep along the splines of the countershaft and through the ID of the spacer, #35. The only 'seal' formed then is the metal-metal interface between the outer face of the spacer, #35, and the back face of the C/S sprocket. Make sure that interface is smooth and flat. Maybe try some yamabond???


