[Gremlyn71]

Condition of seal and like I said wasn't even pushed in case. I only ran this bike for 12 mins .2 on the Hour meter and it used 200mls of trans fluid

[Back2-2]

That actually looks like the seal failed sealing on the perimeter of the seal - not the what is called the "Lip" of the seal.
As for the pin. Best guess is that is was an alignment pin as you described.
Sounds like you are competent with mechanical skills and you are getting it sorted out.

[Gremlyn71]

Yeah Neil I think the seal was turning in the case, new one was a good fit. So I have done the crank seal looked over the exhaust valve set up all looks ok and moving freely, cleaned out expansion chamber and silencer and re packed the silencer. Carb is all cleaned out jets changed new cable holder as I bloke original air cleaner done, bike is ready to start letting it sit overnight to let silicone in exhaust flange set overnight wish me luck

[Back2-2]

Good luck. Make sure the cooling system is full. Gets over looked many times on first starts after a rebuild.

[Gremlyn71]

Seems to be running good

[Back2-2]

Looking Good! Nice job.