OK.. Finally got the pinion seal out. Took some banging and pulling, but it came out. Fit the new seal in and as The Machinist said it was a bit tricky to get it in. I tried to strike the surface of the seal as evenly as I could and did it the same way you would tighten lug nuts. It was going in perfectly at first, but right toward the end it got a little collywompassed inside the shaft and bubbled a little bit on the edge as it fully seated. Its not much but just wanted to get an opinion on whether or not this may turn out to be a leak?
Secondly, after the seal was in I fit the differential flange back onto the diff housing. I noticed that no matter how hard I pushed, tapped or jiggled it it would never fully seat on to the lip without at least an 1/8 inch of a gap. I definitely couldn't get seated with just my hands but as I tightened the diff nut down it closed the gap to about 1/16. Is this normal or does it need to be fully seated on the lip of the diff housing where theres' no gap?