Anything I need to be cautioned with when changing oil seal and paper gasket?
Yes.
After the brake shoes, brake camshaft and Cardan cover nuts and wavy washers are removed, you note two (2) empty threaded holes. These accept a 5mm thread bolt which when tightened evenly, will lift the Cardan cover.
It will likely be necessary to heat the Cardan cover and tap the drive splines to remover the cover from the crown gear assembly. Use a plastic mallet, not a framing hammer! Note the location of a thick spacer and a large diameter shim. Don't lose 'em. Reinstall as you found them. I use a Harbor Freight cheap-o heat gun and it works great.
Spit sizzle is the temp you're looking for.
After the large seal is removed, get busy cleaning off all the old gasket material from the Cardan cover and the final drive case. Every tiny bit must be removed or you risk creating a leak. No sharp scrapers! Both surfaces must be absolutely clean as the paper gasket is a part of the shim setting for the final drive crown and pinion gears.
Check the area where the seal rides just aft of the splines. Look for any nicks or damage.
Note the depth of the original oil seal. Most are installed at a "bottomed out" position as determined by the Cardan design. Some owners that have discovered excessive wear or slight damage in the seal contact area have had positive result in setting the seal less than full depth. I cannot encourage this idea but some folks do this.
Reheat the Cardan cover as an aid to placing it back on the crown gear. Remember the order of components. You must be very cautious of damaging the fragile lip of the oil seal. Those splines might just be hungry.
Trim a 12oz beverage can, smooth the cut edges. Repeat... SMOOTH the cut edges. Place the fancy install tool over the splines, lube it with some gear oil, ease the heated Cardan cover into position and remove the semi-official BMW install tool. You remembered the paper gasket, right?
No goop on the gasket! Install as is. A little dab of grease will aid holding it in position. New wavy washers and torque to spec.
Have I forgotten anything...?
