Pull the seal out, and hammer it back. It's not like your going to damage it worse. If it hammers back put a new seal on, if it breaks no problem, put a new seal in it, and JB weld the place that broke, little hocky but should work, looks like just the part that holds the seal got bent. Another option is to pull the seal out and die grind it back to being round, then your not hammering it back into place making it weak.
You certainly can't use it like it is...that's a leak for sure. Either attempt to repair it of get another one.
OUCH!! Looks like you have a claim against the shipping company. Looks like they dropped it. I'd try to make them pay for the damage.
Thanks for the input guys. I found a tailshaft for 75.00. Is this something I can easily replace myself or will I need special tools to do it. Are there any tricks to getting it done.
