Mercruiser waterpump shaft groove. Too deep?

[LastCall1983]

Changing impeller and housing on my Mercruiser outdrive (1977 outdrive with a 351w engine). I was watching videos on youtube and i saw one that said the groove where the seal meets on the shaft can be worn to the point it wont seal anymore. Does mine appear to be worn too much, and if so what are my options? replace the shaft the only one? Also does that seal need to be replaced as well?

 

[LastCall1983]

Re: Mercruiser waterpump shaft groove. Too deep?

Another photo after cleaned up. Just wanting to make sure it's good or not before i put it all back together. Thanks.