Looks like I have it fixed, for now at least.
Swapped out the $6 seal for a $50 one from Napa.
Also while looking at the driveline it looked like the angle of the trans and TC was a little lower than before. When we rebuild the trans we used the updated transmission extension housing that goes between the trans and TC. Thinking the mounting tabs on this one might be slightly different than the original I used a a spacer to raise it about 3/8".
Now I get no leaking.
2004 lb7 crew cab
4" Tuff Country lift
315 70 17 BFG's on H2 wheels
MBRP full exhaust