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You fit the seal into the housing first (with a little sealing compound) so it fits in all the way and doesn't leak around the edges. If you put the seal on the shaft first it won't be seated in the housing properly (there are clearances involved) and it may well leak between the housing and the seal. Don't heat up the seals - they're made mostly of rubber and may well harden. The soft "lip" of the seal is easily damaged and should fit the shaft snugly with a bit of gearbox lube - a gentle twist and push should see the shaft fit nicely into the housing, it shouldn't need pressing in. If you've already applied a hammer to it it may well be buggered by any roughness or corrosion you didn't clean off the shaft.
Ahh, think you're confused by the subject title (I was having a special moment) - i actually meant mud shield not oil seal... but, yes, you're right, that needs to be done in situ