From the factory these tractors had a seal that I believe was several thin pieces of cork sandwiched together, at least that's what mine was. The cork kinda just slows the leak rather than completely seal it, so the spiral you see is meant to push the oil back into the motor when it's running. That will not work with a new modern rubber lip seal.
My B was an earlier model and used a smaller diameter seal, so I used a Dremel tool to bore the hole out a bit bigger for a modern seal. What I did to fix the groove was make it all nice and clean, fill it with JB weld, let it cure, then file/sand it down until it was smooth. Allis B/C/CA expert Dick Lemmons here on the forum advised me that, and while I was doubtful at first, it worked great and has been leak-free for almost 2 years. Since the seal rides on the metal crankshaft, it won't wear down the JB Weld.
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