Sorry I should add to that:
6. Making sure that the engine-blok seal is an oil-lubricated type and the
pump seal is a water lubricated type (some types are both water and oil
lubricated, but if not and if interchangable.....)

What worries me is the fact that water could pass from the pump to the
engine-block seal an further at all; it should leak right into the bilge ?!?
Are you sure about the water following that way an/or is everything
reassembled correctly?

Mees de Roo