Replace axle seal on 2003 lincoln town car

If it is the rear axle housing your installing the seal into
& the seal has an open side

Then the open side with the spring, goes into the housing
& the seal is at the outer end toward you

If you have a long bearing, it could have the seal as part of it
& it is to the outside

Your way of asking, the seal goes toward the wheel,not the diff

Its a big job. You must remove the tires, brakes, backing plates. Remove the differential, slide out the axle, remove bearing. Get new axle, then reverse the procedure. Bearings are pressed in, and you will have to have a special tools. Might be better to have a local repair shop do it for you. Im guessing around $300 will get the job done.

Its a long procedure.

Go through the related help links,similar to your issue:---
Click the link below:---
How to remove Front differential? http://howtobyme.blogspot.com/2012/01/how-to-remove-front-differential.html

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Timing Belt, Cover, Sprockets, & Seal replacing ? http://technoanswers.blogspot.in/2012/02/timing-belt-cover-sprockets-seal.html

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Crankshaft Front Seal? http://schematicsdiagram.blogspot.com/2011/12/crankshaft-front-seal.html

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Rear Main Seal Leaking? http://whatisbyme.blogspot.in/2012/05/2003-lexus-rx300-rear-main-seal-leaking.html

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Differential Chatters? http://whatisbyme.blogspot.in/2012/04/1996-toyota-prado-differential-chatters.html

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4x4 front differential will not engage the axle? http://technoanswers.blogspot.in/2012/02/4x4-front-differential-will-not-engage.html

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CV AXLE stuck in Transmission? http://technoanswers.blogspot.in/2012/04/cv-axle-stuck-in-transmission.html

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These will help.For more help,keep updated.Thanks.

I searched under 1997 lincoln continental and found this: Driveshaft and U-Joints
REMOVAL & INSTALLATION Town Car and Mark VII-VIII Fig. 1: The bolts retaining the rear driveshaft yoke-to-differential flange require a 12mm, 12 point wrench or socket to loosen them
Fig. 2: Remove the bolts retaining the rear driveshaft yoke-to-differential flange
Fig. 3: Separate the driveshaft from the axle flange and . . .
Fig. 4: . . . disengage the driveshaft from the transmission output shaft
Fig. 5: Insert a plug onto the splines of the transmission output shaft to prevent fluid from leaking out

1. Raise and safely support the vehicle.
2. Mark the position of the driveshaft yoke on the axle companion flange so they can be reassembled in the same way to maintain balance.
3. Remove the flange bolts and disconnect the driveshaft from the axle companion flange.
4. Allow the rear of the driveshaft to drop down slightly.
5. Pull the driveshaft and slip yoke rearward until the yoke just clears the transmission extension housing seal. Mark the position of the slip yoke in relation to the transmission output shaft, then remove the driveshaft.
6. Plug the transmission to prevent fluid leakage. To install:
   
7. Lubricate the yoke splines with suitable grease.
8. Remove the plug from the transmission and inspect the extension housing seal; replace if necessary.
9. Align the slip yoke and output shaft with the marks made at removal and install the yoke into the transmission extension housing. Be careful not to bottom the slip yoke hard against the transmission seal.
10. Rotate the axle flange, as necessary, to align the marks made during removal.
11. Install the driveshaft yoke to the axle flange. Install the bolts and tighten to 71–95 ft. lbs. (95–130 Nm).
12. Lower the vehicle.

I just went to a shop to have that done. They need to open differential gear box and removed a pin, and removed the axle to access the bearing. It end up that the axle is also damaged so now I removed a noise and add a new noise.

you need to pull the cover off the rear diff. remove the rear brake drums or rotors, remove the bolt that holds the pin in the rear end, remove the pin, remoce the c clips, pull the axles out. remove the seal. you can do this by using one ofthe axles to pry the seal out. install the new seal and reassemble. use rtv sealant to reseal rear diff and fill with about 3 - 3 1/2 qts gear lube-may take synthetic

Replacing axle seals isn't something you could do in a few hours but not impossible. The short and sweet of it is you have to get the axles out of the differential, so you can pop the old seals out and replace them, My time frame estimation would be about 5 hours for the whole job

if you need to change the axle seals here is the process. You need to remove the rear wheels. Remove the brake drums if so equipped. Remove the rear cover on the differential. Turn the differential until you find the bolt that holds the cross shaft in place. Remove the bolt and pull the cross shaft out. Then you will see the axle ends. Push the axle in towards the center of the axle. You will need to remove a C clip retainer from the axle end. You can then remove the axle and gain access to the seal. Repeat the process on the opposite side. Then reverse the disassembly process. Place the cover back onto the differential housing and refill the differential. Good luck.

Axle Shaft Removal

1. Raise and support the vehicle. For additional information, refer to Section 100-02 .

1. Remove the wheel and tire assembly. For additional information, refer to Section 204-04 .

1. Remove the differential housing cover (4033).
   1. Loosen the bolts and drain the lubricant from the rear axle housing (4010).
   1. Remove the bolts.
   1. Remove the differential housing cover.

Remove the rear brake disc (2C026). For additional information, refer to Section 206-04 .

1. CAUTION: Turning the differential case (4204) or an axle shaft (4234) with the differential pinion shaft (4211) removed will cause the differential pinion gears (4215) to fall out of the assembly and damage the components.
   Remove the differential pinion shaft.
   1. Remove the differential pinion shaft lock bolt.
   1. Remove the differential pinion shaft.
2. CAUTION: Do not damage the rubber O-ring in the U-washer groove.
3. Remove the U-washer (4N237).
4. Push the axle shaft inboard.
5. Remove the U-washer.

Reinstall the differential pinion shaft.

1. Install the differential pinion shaft.
2. Install the differential pinion shaft lock bolt finger-tight.
3. CAUTION: Do not damage the wheel bearing oil seal (1177).
   Remove the axle shaft.

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Seal Removal

1. Remove the axle shaft (4334). For additional information, refer to Axle Shaft in this section.

1. CAUTION: Never remove the wheel bearing oil seal (1177) by itself. Always remove the rear wheel bearing (1225) and the inner wheel bearing oil seal at the same time.
   NOTE: If the wheel bearing oil seal is leaking, the axle housing vent may be plugged with foreign material.
   Using the special tools, remove the rear wheel bearing and wheel bearing oil seal together.

Installation

1. Lubricate the new rear wheel bearing.
   • For 4.0L SOHC and 4.0L EI with limited slip rear axles and 5.0L vehicles, use SAE 75W-140 High Performance Rear Axle Lubricant F1TZ-19580-B or equivalent meeting Ford specification WSL-M2C192-A.
   • For 4.0L SOHC and 4.0L EI with conventional rear axles, use SAE 80W-90 Premium Rear Axle Lubricant XY-80W90-QL or equivalent meeting Ford specification WSP-M2C197-A.

1. Using the special tools, install the rear wheel bearing.

1. Lubricate the lip of the new wheel bearing oil seal.
   • Use Premium Long-Life Grease XG-1-C or equivalent meeting Ford specification ESA-M1C75-B.

1. Using the special tools, install the wheel bearing oil seal.

1. Install the axle shaft. For additional information, refer to Axle Shaft in this section.

if it is the seal, you will have to remove the caliper and rotor, remove the differential cover and remove the bolt and pin inside the diff carrier housing. push in the axle and remove the axle clip and pull out the axle use a seal puller or prybar to remove seal reverse the steps to assemble