I put on it, what its going to be in. This time, trans oil. If you look real close, there is a bevel on the seal, and a bevel on the case. The correct depth usually works out the same as flush on top. Maximum hold on the seal, and not too deep to block the oil hole that feeds the main crank bearing/ rub against the bearing. Now, back to the seal is not in the hole part? What is up with that? Your bike has a big collar that goes inside the seal? And makes what you are doing a lot easier? Have you done this before? No up and down movement at the crank end? Did the bike run before you took it apart? A spooge monster? Keep the water proof grease for suspension parts. Vintage Bob