727 issue

I can't remember ever removing a kd seal that was installed with the lips down. However, I'm always troubled by the fact that the outer lip is extremely close to the top of the manual shaft bore. I've often contemplated installing it with the lips down, Mr. Tschacher; and your post has convinced me to install it lips down from now on.
I agree and for the record, how often is a seal "supposed" to be installed in such a way to allow fluid to be held out instead of in? Of course if the purpose was to keep water out. I say as you say, I never recalled pulling that little seal out with the lip towards the inside of a trans. Now if the fluid level is retained as it was intended from factory, that level should remain below the KD shaft seal which is doesn't. When I first started building TF's I didn't really pay attention to this but soon after that I did, it was an AHAH moment for me. I used to have an oil spot under my early day cars and was frustrated by it until I really paid attention, around the third time I had gone into my first 727, before I learned about the NOYOYO kit, that was around the 4 or 5th time. I had to go thru a learning curve in the late 70's early 80's which got me to a transmission that had a shift that I have never seen from anyone else. It was beyond comparison, about as good as any TH350 or 400, NO lag from second to drive, 1st to 2nd was a tire smoker and 2nd to drive would make the ash tray open on its own even at light throttle. Heavy peddle would pin you in the seat from start to let up and require you to leave your head on the head rest if you didn't want a pain in the neck. I had that trans behind a built 440 in an E body daily driver that was capable of low 10's with a Thermoquad in the mid 1980's. Last time I used that kit was in an OD back in 05 I think and it was a small body case in a 3/4 van, go figure, the guy instantly left town with a large trailer for Colo. and loaded up with glass sliding doors and ran the trans in OD and smoked it. He let all the pieces go with the shop and got a POS used trans that lasted a week then scrapped the van. After a few jobs like that I just about gave up fixing other peoples junk. So now I have a bunch of Chevy HP stuff and would trade it all off for a collection of MOPAR stuff and a decent A body, or even a non performance B.