Ok, here goes nothin'. Been working all week on this. I'm doing a bit of redneckery, decided to build up the busted out area with some JB weld. Took it slow, did layer upon layer until I was satisfied with the height. This is the end result.
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It appears that it engages the thrust lip on the inner side, let's cross our fingers!
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I went ahead and clocked the seal just as an added precaution. The main cap went back on ok, dabbed a little bit of sealer on the backside of block in case any oil tries to sneak through.
Got everything buttoned back up today, engine off the stand and on the hoist. Realized the last time it went in, I didn't line up the clutch disc. Now, I really have no idea if it was truly aligned or not. So, this time around I figured I'd better do it correctly. Of course, I don't have an alignment tool since this is the only vehicle I have with a clutch. Well crap....now what? Let's Google for ideas! By god, I came across one idea that worked pretty good. Find a socket that fits in the snout hole snugly, and then wrap the back end of the socket with tape until it's thick enough to take up the rest of the space.
Like so:
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Worked like a charm!
Engine is back in, bolted up and ready for fluids again. I'm really hoping this goes good this time.