OTC makes a special tool to seat the seal on the back side of the hub. I think its the 6697 for the 05-07. It's not cheap but its better than doing the job twice and having to buy a second seal, at least that's how I justified the cost. I did this job on both sides when I did my ball joints and its really not that bad. I would check your ball joints if you do decide to tackle the job since you will already have it pulled apart.

 

I made my own tool for seating the seal. I'll try to post pictures. I found instructions online. Just used metal pipe with cap and base. I had to grind the base down with bench grinder to get the right diameter. I bet I only spent 10 bucks at the most.

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http:https://cloud.tapatalk.com/s/585d2baf9a03c/ball_joint_tool_in_seal_partial.jpg?

 

$70 on amazon, as stated check your ball joints and u joints. It is likely one or all of them went out and tore the seal.
Personally I would just replace the u joint and both ball joints while I was at it unless they where recently done and the seal was reused.
There is also an updated dust seal for the axel.

If you have oil in your axel tube, then your oil seal is bad. That means you get to pull your whole front diff apart.

If you wanted to take the easy way out then throw some warn manual hubs in and call it a day. This however will not fix your ball joints or u joints.

In my experience when one piece fails the other related parts are right behind it.

If you are on friendly terms with your local dealer service department you could probably pull your knuckle and bring it in and have them press the seal in for you. Maybe grease them up with doughnuts or something.

 

Just did this job myself (on a 2004 though, so a different seal installation tool). The tool makes the job very easy, and also sets the depth of the seal in the knuckle perfectly. No muss, no fuss.

I'm betting the update seal has a metal guard on the side that faces the U-joints. This helps protect the rubber from road debris. For the 99-04 trucks, the Ford part for the outer seal is 3C3Z-3254-CA:

The older seal (F81Z-3254-CB) didn't have that metal cover.

Not sure how different the knuckle design is on the 2005 and up version.

 

The 05 DiY pipe tool is a larger size pipe than the 04. And you cant have the dealer put the seal in the knuckle without bringing it the whole truck
But they can put it on the axle then you seat it in to the knuckle on the truck The special tool from OTC is 70 bucks and can save you from trashing a new seal

It sets to depth. The DIY tool does not
I made the DIY tool. But i just bought the tool

 

Completed it tonight. Not too bad! Made a tool from pipe at home depot. Seems to have worked well. However.....

I have replaced the locking hub seal, the hub seal, as well as the outer axle seal. Put it all back together and still zero vacuum. Frustrated, I decided to swap hubs from passengers side to drivers side. This gave me perfect vacuum.....Is there a diaphragm within the locking hub itself that could have ruptured on the passengers side hub? Seems like the only thing left. If so I'll order a new hub and hopefully be good to go.

 

There is the hub o ring
The hub end seal
And a diaphragm thAt is non servicable

 

Yup. All seals are brand new. Looks like im buying a new hub!

 

Just to follow up with what ZMANN said above. Everything I have read, 99-04 you can make your own tools for the seal with some pipe and floor flange. I in fact have made 2 when I had my 02. But with the 05-07, there is something special with the tool that sets the correct depth of the seal so it is pretty important to use the OEM tool or the OTC tool (based on my research). That is one of the first things I purchased when I bought my 06 because those OTC tools are usually backordered (At least 2 years ago).

Again, I'm not expert in this. But did the DIY tool set the depth incorrectly, possibly installing the seal incorrectly which might not make a vacuum?

 

I thought so too, but that wouldn't make sense in regards to the fact that I swapped locking hubs from passengers side to drivers side and the problem followed.

 

the knuckle seal tool has nothing to do with the seals in question here


but to elaborate on the knuckle seal
you can make the vacuum seal tool your talking about for the 05 up you just use a larger diameter pipe 2.5 IIRC

but in either old or new your not setting the seal to the exact depth with the DIY tools

so the chance to damage the seal is much greater and that seal is a special style that spins within itself so any damage will likely shorten it's life if not render it useless instantly