Al Smith
Mac Daddy
Dirt is what kills most saws .It doesn't do it as fast as a lean burn or straight gas but given enough time they will die .
The problem with a bad seal is figuring out why it went bad. I'm suspecting the rod bearings might be bad because the flywheel has scuff marks where it has been rubbing, and it wouldn't rub unless there was slop in the bearings. Bad bearings allowing the crank to run out of alignment will cause the seals to wallow out and leak. I can throw a new seal in it and it may run for a few weeks but that won't fix the bearings, and I'm not splitting the case to replace crank bearings on a worn out saw. The cost in time and parts far exceeds the value of the saw. I'm afraid this particular saw is done.
On the other hand there are lots of good parts on the saw. The piston looks very clean with no visible scuff marks, so I'm guessing the top end is in good shape. It has very good compression.