I hope I'm understanding the situation as you meant us to visualize it -- and if so, then it's definitely NOT all right.
It sounds like you did roll the lip of the seal. In fact, considering all the work involved, I wouldn't even try to salvage that seal (there could be any amount of distortion to the seal edge, and even to the spring behind the lip of the seal), but would just yank it out and try again to insert a new seal.
Do it right, or you'll wind up doing it again real soon (not to mention that the leaking oil is not good for your new timing belt which I am assuming you're also installing).
Good luck.
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