Working from memory here (I've pulled these a couple times):
<snip>
1. Does this indicate that the oil seal has failed, ...
Like Bill said, you've probably damaged the paper gasket and/or O-ring.
2. From reading the shop manual, it looks like I will need to pull the hub
and bearing ...
The bearing is an interference fit to the axle and to the inner part of the
hub. You can actually--carefully--knock the hub and bearing off from the
backside after removing the large, eight-sided nut and lock plate. Be
careful--bearings are expensive and you should be able to re-use yours
(check for fretting or heat stains). If not, you'll need a press to remove
and replace the bearing. It's "splash" lubricated by the differential oil.
Doubt the seal is your problem, but replace on principal when you put it
all back together.
3. ... I don't get how to actually measure that the
bearing spacer is protruding .001-.004 inch beyond the outer face of the hub
and paper washer. ...
When you replace the hub--I bought a properly sized heavy steel tube from a
metal supply to use as a drift against the inner bearing race--the bearing
should bottom out with just a bit of the axle shaft standing proud from the
spacer (enough to just catch your fingernail). It just needs to protrude
enough
to give a little clearance for the paper gasket to fit, but not be loose.
4. The Moss catelogue shows an O-ring and an oil seal, ...
Use new O-rings and paper gaskets (there is a groove for the O-ring). Some
people use RTV or similar instead of the paper gasket. I like to coat paper
gaskets with a thin coat of Permatex Aviation Form-A-Gasket.
5. ... I'm having trouble visualizing how the hub is actually mounted. If
you can pull the axle shaft out without removing the hub, what does the hub
locknut thread onto? ...
The large, eight-sided locknut screws to the end of the axle housing--which
is threaded--and holds the inner bearing race. It's locked with a locking
tab washer. You should get the special socket for this--they're about
$50--but I confess to having knocked them off with hammer and chisel.
The hub is an interference fit to the bearing--hence the seal
on the backside--and the whole thing is held together with the wheel hub
mounting studs. This is known--I believe--as a "three-quarter floating"
axle and is a good design because if the axle shaft breaks the hub still
holds the wheel on.
bs
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