I have used the Graphtite seals from Best Gaskest. In my experience there is always overflow trapped between the bearing cap and the block - I always remove and tighten the cap several times and use a razor blade to cut the frays till it bolts clean with no bulges getting pinched.
In your case the upper seal already in place. I would use a piece of dowel rod to pack the exposed ends of the upper part of seal. Tap the dowel with a hammer. Then install the bottom half the rope seal as described in the instructions but trim it long enough to fill the voids left on the block side - plus the .015 extra. Start the cap bolts but leave them loose so that cap hangs on them. Slowly draw the bolts up toward the block making sure the extra on the ends are going in straight.
Tighten snugly and then loosen slowly allowing the cap to come straight down. Once the tails are clear of the block take the cap all the way off and inspect for pinches on the face of the cap. There shouldn't be any on the block side - but make sure it is clean. Trim accordingly and try again.
The pin is used to make sure the seal doesn't spin. When installing start in the center of the rope seal pressing it down on the pin and then work from the center out.
