Paul, You and I know, that the shaft must have sufficient play in the housing for the engine to run well, so it will leak oil if there are no provisions like oil reclaiming grooves. Having said that, some personal observation: Bearing seal construction varies, and some seals are designed to lightly touch the inner race. The MVVS gas engines partly are supplied with a one-sided lip seal in the front bearing which bears to the inner bearing race. I could not detect a manufacturing preference as to which side the seal lip should be. Fit the seal outside, so that no dirt can enter the bearing, and the engine mean positive crankcase pressure will press the lip seal open, and thus leak oil. This way the bearing is lubricated well, and the engine front will seep oil. The plane nose will get dirty. The oil reclaiming grooves cannot function well this way, because the lip seal prevents any back-flow Fit the bearing the other way around, and the seal will stop all outward gas/oil flow; the engine stays clean. IMHO, it also will prevent proper bearing lubrication that way, and may cause premature bearing failure. On top of that, the delicate ball races are exposed to the environment and may suffer dust ingress. But most important, the engine stays clean. Some fliers prefer that over longevity. (not I) It is always good if the engine user has choices isn't it?