Hi, I've got the transmission out on my 1997 540i with a 6speed manual. Since I'm replacing the t-bearing and guide sleeve I am also replacing the input shaft seal. I was careless when removing the seal. I've failed to remember how deep to seat the new seal... The Bentley manual says "Fully seat the seal", but there's not really a seal seat all the way in the bottom, and the retaining clip for the input shaft seems close to the lip of the seal. The picture in the manual shows the seal flush with the front of the bore - is that what they mean by "fully seated"? Any pro's know the answer (or DIYers who have better memory?). thanks as I'm not willing to put it all back together till I get it right, Larry
One usually seats the seal flush with the face of the bore. I am not 100% certain that is the case on your trans, but it is pretty much the case with all of the cam, crank, and trans seals I have installed over the years.
FWIW - I got the tranny back in the car and the car back on the road. The new clutch, and particular the new guide sleeve make it smooth shifting.