89 mercury 20 HP cylinder #2 flooding

[RayWise]

So I've got a 20hp Merc that I've had idle and running issues ever since I've bought it but it has good compression on both cylinders and no scoring but #2 is not burning at idle and seems to be flooded. Replaced coils,wires, plugs and has good spark so I then checked reeds they seem to be in excellent shape which led me to check the lower crank seal which looks fine but there was fuel puddled in places when I took it apart but the seal is facing the bottom..I can see the tension spring..is this seal in the correct way or is it backwards? My repair manual doesn't have a good schematic showing which way the seal faces. I'm going to replace it due to the fuel puddling but want to put it in correctly. Thanks for any advice.

 

[racerone]

Check fuel pump diaphragm.

 

[RayWise]

Rebuilt carb and fuel pump as well but I'll check them out again

 

[faztbullet]

What's compression on #2?