Yes. and yes, it still leaks..... Try machining it for a late model one piece seal. This is suposed to work...
No experience here yet, but I read it will reduce the leakage. hopefully so as I will be trying this soon.
Some years ago I turned the crank flange on a 235 for a customer to allow a one piece Chicago Rope neoprene seal. The slot in the block needed to be reworked with a die grinder, I am told, for the seal to properly fit. I wrote this modification up in the 12 Port News. Later another machine shop wrote in with pictures of the block and main car they had machined to accept the next larger size seal so that turning the crank flange was unnecessary. Neither leaked. Back issues may be available from the Inliners International.