The seal should be lubed on the inside or just lube the shaft where it goes. Seals should be installed evenly with the proper tool but who has all those special tools. I have installed a gazillion seals with what ever tools I had available. Be careful to push it in as evenly as you can and not damage the sealing lip.

Thanks.
I have everything torn apart, and am waiting for my Father in law to find his Locktite 515 before I can put things back together.
This thing still has plenty of cross hatching on the cylinder. Piston head has a SMALL amount of carbon, and head has no carbon at all!
So I install the flywheel end seal centered over the groove, like it's shown in the manual, right? And can I assume that on the lower seal, I just center it as best as I can in the area where it goes, then the snap ring will keep it from moving to far down while in use?
One last thing. The lower crank was pretty rusty/grungy, and I had to sand it a bit to remove the pully. While it's apart, should I sand it till it's shiny to lessen any damage while installing the lower seal?
Thanks for the help.
Terry

Terry,
From what you describle I assume you have the engine block opened up for inspection? you want to install the seals after the block has been reasembled and bolts between halfs torqued as needed. the top seal you want seated slightly lower then flush the casting. the lower seal you want countersunk so the snap ring can fit in the slot. use a punch with a flat end or large allen wrench with flat end to tap the seals in using a gentle tap with hammer and alternate tapping on either side of the seal so it seats even. As far as removing rust from the lower end of the shaft go by resistance as you install the new seal. if it binds up deburr the shaft with steel wool or sand paper as needed, but you dont need the shaft to be competly clean of surface rust. Also when you install the lower shaft you will have debris build up along the seal as you lower it. if you notice debris build up on the shaft as you lower the seal then pull the seal up and wipe debris with paper towel you may have to do this several times but its better then debris being in the ball bearing area. I assume you know the other basics for reasembly such as form a gasket between crankshaft halfs and tighten crankcase bolts evenly as you torque. Finally while the engine is off the deck you have easy acess to the bottom of the carburetor. I recomend you enlarge the main and idle jet slightly to avoid rough running issues. use 67 and 78 number drill bits from a hobby store. Also may want to replace the needle and seat within the carburetor. This should cover the bases for the weak spots on the mower. let us know when you get the mower back in business

OK, Thanks for the advice. I just got the locktite so I was going to do this tonight until I read Erics post and it confused me!
Yes, I have the cases split, so I thought I was going to put the seals in and THEN close it up and make any minute adjustments after it was buttoned up. Why not that way? I confess my ignorance, but I don't understand why it doesn't work that way.
I will defer to your experience, after all, that's why I posted here. It's just that it seems easier with everything apart.
Thanks.
BTW, I was just planning on doing the pilot jet, but thanks for the reminder...... maybe I should do the main as well.