Re: 4l80E install. Transfer case does not fit.
You don't need the seal in there. The rubber seal is too thick. That is a tapered fit. Basically, as the pieces get tightened together, it wedges in perfectly. Just a little bit of permatex was all you needed. I've taken apart MANY 4L60 where the factory puts NOTHING in there.
Did you take the adaptor off of the trans? Why did you do that? The reason I ask is that there is a lot of permatex all over the place where there wasn't before. If it needed a seal in there, I would've put it in the kit. Your good with what you've got. It's equally separated all the way around due to the rubber ring you put in there. It's not just at the bottom.