Shadowman is correct, and to answer your early question to me - no, the splines are not in contact with the seal. Perhaps the easiest way to visualize it is to think of the outer hub which is secured with the controversial bolts and thick washer. Well the OD of this hub pushes into the seal (i.e. the smooth outer OD of this hub is what rides against the lips of the seal). The hub has a "hole" in the middle which is splined - female splines, which mate with the male splines on the output shaft from the transaxle. Your car could be leaking in between the smooth OD and the seal lips, or in between the male/female splines. The splines provide an alternative path for transaxle fluid to follow because they are not a very tight fit (male to female). If fluid flows outward between the splines, the only thing preventing it from coming out completely (and dripping below the car) will be any sealant you put on the thick washer securing the hub to the output shaft - just as Shadowman described. I will seal mine up as he describes, and hopefully all will be well. Hope this helps, and a thanks once again to Shadowman for all the info he provides us. :cheers