School Me! Rope Style Oil Seal

Would someone please school me on how to install the old rope-style rear main seal?
and what the extra little pieces are?
I'm assuming that they sit in the Main Cap (as pictured) before it goes in?
Use any Sealant on this???
Gonna set the Crank into a '65 273
and need to do this right the 1st time.
Thank You for any help.

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