It kind of depends on the seal but for a typical lip seal you want the flexible lip of the seal to be facing the OD or oil source. That way any pressure would tend to make the lip push more tightly against the plunger metal rather than have it push the seal away from the metal and pass thru between the lip and metal.
There is a cutaway of the solenoid assy in figure 9 (page 5) of the Econodrive Training manual which you can download from the site and there are a few photos and a discussion of the seal and spacer in this old thread.
https://packardinfo.com/xoops/html/modules/newbb/viewtopic.php?topic_id=9879&viewmode=flat&order=ASC&type=&mode=0&start=0 Watch that the spacer is oriented properly (small holes on the spacer are to the rear) and energize the solenoid so the ball can be inserted into the pawl properly. (If solenoid still connected, have OD lockout knob pushed in and ground both the solenoid case and the wire connected to governor AD terminal -- if not still connected, temporarily connect both solenoid terminals 3 and 4 together for hot lead and the solenoid case for the ground). Use heavy wire to the battery and energize the solenoid so plunger is extended while catching the slot in the pawl.
Both the solenoid and the spacer being installed improperly have caught people by surprise when the OD didn't work after reinstalling the solenoid.
This Post was from: https://packardinfo.com/xoops/html/modules/newbb/viewtopic.php?post_id=203092