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When I disassembled my '66 12 bolt, I thought the axle seals were flush with the end of the axle. However upon installation of the new seals, they go in another 1/4 or so. Which position is correct?
 

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I have a 67 12 bolt in my 70 elky and going by my pics (which arent all that helpfull for seals) it looks like they are set back a bit yes.

I know that the axle saver bearings move the bearings and seals out a bit. So that would mean the seal would be set back with a standard bearing.
 
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