Rubber will last much longer if submerged in oil. The
failure may simply be due to nothing more than the years of
sitting idle.
In terms of the seal installation, I would recommend
using Dow Corning 737 (see SI 1324C, 2009), Pliobond is
offered up as an alternative if the 737 is not available.
After having recently changed a shaft seal, I highly
recommend sticking with the 737, in particular for the
do-it-yourselfer. It provides much more working time and is
easier to handle than contact adhesive. I can see many
A&Ps not wanting to use it because of the longer cure time
(24 hours).
Chris Zavatson