I know you have a ton of replies to this and thats great, just wanted to throw my experience in the pot. My rear was leaking like yours, and true to form it was the seal, but my housing was all messed up where the seal sits, apparantly the axle had gone out at one time and rode on the housing, but i dressed it up with some emery cloth and put a healthy dose of silicon on the outside of the seal before i installed it, sealed up nice, hasnt leaked a drop here 6 months later.