[rpduc]

That washer HAS to go between the two bearings in the proper orientation or you will bind up the bearings when you tighten the axle. It should be pretty obvious to you which way to flip it if you didn't note it on disassembly.

I would just replace the seals. They are not that expensive.

If you have a couple days just order the bearing kit from Go Fasters. In my experience it was quite a bit cheaper than buying individual bearings from a bearing shop.