cool, thanks for all the good feedback guys...

 

I don't think there is anything on the outer part of the seal (maybe use a little RTV if you want). If I recall, the new seal I put on was already pre-greased on the inner lip.

Clean everything well before you put the new seal in and clean all that old oil off everywhere, so you can later tell how your new seal is doing.

 

How can you tell if it's the rear main? That thing looks like oil is everywhere. 94 with 26k miles? Nobody has been driving that thing.

 

When I took off teh flywheel, the gasket or seal where the oilpan is....there was droplets coming from it.....Whenever i drove the car and then parked it, few drops appeared on the ground. I checked the filter and the back of teh intake, all seemed ok.