Thanks. I really like how it turned out.
The new counter shaft seal came in today so I installed it. But first I had to get the old one out. I didn't want to pull the engine and split the cases to remove the counter shaft so I engineered a solution. I carefully drilled a few holes through the old seal with a 1/16" drill bit. I then screwed in a couple self tapping screws. I tried the wiggle jiggle method to remove the seal, but got no where. So I grabbed a screw my slip joint pliers and tapped on it with a set of pliers. That got the seal to start to slide out. I moved onto the other screws and worked the seal completely out.
I took a good look at the shaft and block and didn't see anything, but decided to rub some 0000 steel wool over the surface areas anyway. Coated the new seal with a little oil and tapped it into place with a piece of pvc pipe. I forgot to get a picture of the setup while everything was in the bike, but hopefully this will suffice. Just picture the countershaft coming out of the middle of the seal and the pvc pipe as the engine case. Hopefully this will fix the leak. I took a good look at the seal after I had it removed and there was a tiny cut on the inside so I presume I did that when I was installing everything.
![](http://img.photobucket.com/albums/v636/sharsh01/CB%20350/DSC_0421_zpslmytrc8k.jpg)