Does the engine have to come out to replace it?

you can replace the seal behind the fan with the motor in. Remove the fan and undo the small bolt(12mm i think). You may need a puller to remove the flange that the fan bolted to.Remove seal and instal new one. Reassemble all!!!! put a little bit of sealer around the seal before installing it.:party:thumb

Which seal????

If it's the "front" seal between the engine and gearbox then YES.
It's not that hard...just get a mate over to help you and bribe him with beer! A trolley jack also helps.
:beer

P.S. You should also do the clutch and the gearbox oil seal at the same time if they need attention.

[Edited on 15-3-2005 by type3lover]

No the 'air' seal - the one that goes around the entire engine and keeps the cool air flowing in the engine bay

No, you do not have to remove the engine to replace it. In fact, it would be almost impossible to keep it in position while reinstalling the motor.

Access to the front (front is front) is the hardest part. I found it helped not having the carbs in as it gives better access. It is a fiddly and typically dirty job, but not very difficult. Just start somewhere where access is easy and work your way around gently pushing the seal into the gap. You will probably find it necessary to get under the car to help pull the seal through and ensure it is fitted properly.

Sorry, I didn't realise that you were talking about the engine bay seal.
That being the case you ought to do what PurpleT3 has said or otherwise you'll damage the seal. An easy job and you won't need mates or beer!
Of course beer is optional. Personally I always make sure that there are a few stubbies in the fridge b4 attempting any repair job.

No beer makes Homer go crazy!!
:beer :beer :beer