The RTV would go on the outside of the seal (the metal edge) that slides into the block.
If your old seal vulcanized and cut the crank, you can sleeve the crank. A teflon RMS is a cool way to go too, but they can be a pain to install.
And lastly, if your PCV/crankcase ventillation isnt up to par, that can cause an otherwise healthy RMS to leak. Folks have replaced the RMS to still have issues, which were traced back to the PCV.
You might want to replace the pilot bearing too.
Good luck.