So I picked up the tercel today. I brought it to the shop and pulled the right rear axle and the bearing fell apart.
It appears that someone amateur installed this bearing and I could see damage to the axle shaft from a previous repair. Note the collar is on backwards, lulz! Also the axles seals were both leaking because they had not been installed fully. So I split the collar and remains of the bearing.
New bearing and collar installed.
Found that someone had speedy sleeved the collar on the left side but had installed the seal wrong. Stupid.
While I was there I decided to replace the distributor o-ring that was leaking ands replace all 8 valve seals due to some blue when idling for a long period.
Found this little devil inside the valve cover next to the #1 intake vakve spring.
Took some pictures of the worst of the rust and some of the body.
Anyone want to buy some aw11 wheels with pretty new crappy tire boots? lol!