The metal corrodes away, leaving the non-corrosive impurities in the alloy, mainly carbon.Thanks - good idea I'll just take it down a bit and double the gaskets. What turns the metal black and soft?
I use a cheap version of these.
Looks correct. The spring is there to keep sealing tension.
The key-way should end before the seal. Got a closer pic?
The slinger is not a seal. Its function is to prevent oil from getting up to the ignition armature plate. As oil get up along the shaft, it hits the slinger which by centrifugal force sends it out to the outer walls and gravity brings it down. The actual crank case sealing (compression) depends on the oil-film between the shaft and housing.
Got a pic with shaft removed? (Both halves)
The upper bearing surface and part of center has taken quite a beating. Check out the circulation/drain hose and channels.
Page 3, #28.
However with a super clean surface and thin layer of Gel Seal II between the halves, it should work!
Use some 40 engine oil with Moly Lube (Molycote 7400) on bearing surfaces when assembling.