Rob,
Those pictures are the bomb!!

Great call on diagnosing the problem. Seeing these pics really are better than a thousand words. Can you tell me why this seal goes bad on just a few M62 motors and not on all of them. To me it seems like a seal of this nature should be good for the life of the engine. Besides just having a defective seal what things could cause the seal to go. Also if the seal were truly defective why would it have not failed earlier. Why now?
Mark