Hello,
The old style felt seal works okay when the engine is fresh and has low blow by past the piston rings. But as the motor gets older and the blow by increases, the felt seal lacks in comparison to the lip seal in its ability to withstand higher pressures.
The only possible downside to updating to the lip seal housing is unintentionally creating another oil leak from the oil pan gasket.
It is not uncommon for the section of oil pan gasket under the old rear seal housing to tear when removing it to replace the housing.
Even though I have used a section of new oil pan gasket and plenty of oil resistant silicone, I occasionally still have leaks which I usually have to attribute to a deteriorating old oil pan gasket.
So if the oil pan gasket is very old, you might consider changing the oil pan gasket at the same time as updating to the lip style rear crankshaft seal housing. FYI, the same applies to updating the front timing cover or changing timing gears/camshafts.
And I find it easier to pull the engine out of the car to replace the oil pan gasket as opposed to doing the job with the engine in the car.
You can't remove the oil pan without lifting the engine or lowering the front suspension crossmember and I don't recommend either with the transmission removed.
With the engine on a stand, its much easier to replace the oil pan gasket. And while the oil pan is off, you can check out the crank and rod bearings as well as the oil pump and oil pump seals.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502 hiperformanceautoservice.com or oldvolvosonly.com
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