T56 shifter seal correct fit

[Tuske427]

After 6k of driving my car with a T56 magnum, my trans started leaking, too. I took my shifter apart and the fluid was leaking past the seal, filled up the upper area, and was dribbling down the side of the transmission case. No tear in the seal, though. The fluid had just worked it way past. After disassembling the shifter I cleaned it and applied silicone rtv gasket maker on the shaft and reinstalled the seal, and applied more silicone on the bottom side as well. So far so good.

To answer your question- my seal was located up higher like shown in your lower pic.

Supposedly, with the magnum transmission the position you place the shifter in the trans can affect how much it leaks, or how soon it will leak. From what I've read the larger gear inside throws the fluid around more, and if the shifter is directly above this gear, it's more likely to leak. Having the shifter in the rear spot helps keep the shifter away from being in the fluids direct path. Though, mine was like this and it still leaked so I'm not so convinced.