I am replacing the seal on the upper gear housing shaft seal and need a help
confirming on the correct sequence.

The removed items: from the top down: Shift Lever, Teflon washer, Seal,
Bushing in the upper part of the exhaust port and the lower bushing at the
bottom of the exhaust port.

From the parts diagram, the seal sits below the bushing. Which is correct?

Another thing, should the seal lip face down or up? Can't tell from the
removed item as the old seal has disintegrated.

Thanks in advance.

Tan PS