I agree, ford only used the needles one year, there's a reason they got away from it. I have seen the needles leave deep wear marks on the sector shaft of a couple I have torn down
I installed a seal in my 32 housing. It was an easy job. I made a dam in the housing and filled the recess with J B Weld. It was machined out to use 1 3/8 by 1 1/8 by 1/8 seal, I did not cut any metal. It never leaked again.
You need a 1 1/8 bar with a tab to hold the housing. Put it in a lathe and cut the seal recess.
Nicely done! I think I'll explore this concept on a 32 box that I need to rebuild for a friend - might as well seal it up! Did you replace the bushing and then have to ream it for a tight fitment?