I've use the new neoprene seal before and had the same problem with it leaking and yes it was installed the correct way around with the joins offset from the cap / block....but also bear in mind the 292 and the 312 seals are different, when I looked into it the neoprene seal (I called felpro direct) it was reported to be a hit and miss affair with experienced engine builders, I ended up using the hard type rope seal from a 308 chev motor which worked great.