Output shaft seal leaking

[1gcrazy]

So I picked up a tsi awd for fairly cheap and the retard put an MLS head gasket on the car with a new head but didn't bother to clean the old gasket off the block. So thinking the 30,0,0,60 issue was due to rings, I bought a set and decided even though the bottom end is probably fine i'll do just do them anyway. I'm already this far into the car. Might as well.
I pulled the tcase to drop the oil pan and the Tcase was pretty stuck on there. Hadn't been removed in a while. Well the output shaft seal on the transmission started leaking pretty good. All the trans fluid would have been leaked out within a day. There wasn't a puddle that came with the tcase so I realized my prying on the tcase pissed off the seal. I decided to drain it and wasn't sure what my options were on replacing the seal. I took a video of the shaft's movement inside the transmission. I'm assuming the seal is old since it doesn't look like it's been replaced before. I was going to try replacing it while it was still IN the car. Looks difficult but it's better than pulling the motor.
I should have just left well enough alone... SMH

Has anyone replaced this seal?
Is the shaft movement acceptable for a daily driver?

View My Video

 

[Skewer]

The amount of lateral movement you are experiencing, with the pry bar, is normal. The leak you described, however, is not.

Replacing the seal shouldn't be too difficult with the transmission in the vehicle. You will want to make sure the seal does not get caught on the output shaft splines and also that it is flush. Apply some high temperature RTV on the outer diameter of the seal and some grease on the shaft (makes the seal slide on easier) and you should be good.

Fortunately the seal is inexpensive and can be found here:

DSM Output Shaft Seal

Tim