Is this the crank seal? *pics*

How much yamabond are we talking here? A nice 1/8 bead? Must be more challenging to remove said sleeve in the future when that stuff hardens, no?
 
Good job on the diagnosis Noid!

Dont forget to order a new gasket for the clutch cover. The yamaha manual reccomends replacing the lock washers on the crank nut and the clutch nut (page 109 & 110 or 4-39 & 4-40) cheap insurance.

Considering the condition of this seal, might be worth the hassle to replace the other side also.