Re: 1977 Mercury 45HP.Ticking from the flywheel.
Hi,
Well that's a drag. I use to use a piece of 3M black ele tape for a gauge where you used chalk. I thought the chalk was a good idea. Was the o-ring the same size and did you use loc-tite 518 to put it back together with?
Did any of the magnets look displaced or loose in the flywheel?
I have in the past filed the stator metal down to fit better. You have to be careful not to create a short in the plates. They have a laminate between each piece of metal. Use a sharp smooth file for this. One wide enough to cut the full piece in one stroke.
Can you see where the fuel is coming from? or at least an area.
Is the oil recycling hose in good shape. the unburnt oil is pumped up from the bottom bearing to the top one to re burn the oil and lube the upper bearing. Gas comes up the tube with it. This hose is on the starboard side.
I am guessing the retaining spring stayed on the seal when it was installed.
Are the top crankcase bolts tight?
Lots of guesses.

Try cleaning the block of with 409 or some like it to see if you can better see where the gas is coming from.