Ok, that didn't solve it.
I was careful to wipe the surfaces clean with a damp cotton cloth and I followed your instructions for tightening.
1. Is there much chance I overtightened? I also tried backing off a quarter turn and that didn't help.
I can see water running in a near stream from the very bottom center around the seal plate. I can't tell if it is from the wet or dry side of the plate. I see no water coming from anywhere else around the seal plate.
I guess I need to replace the shaft seal assembly at this point.
2. Is the leak I am describing consistent with a failed shaft seal?
3. The hayward parts list shows seal assembly 1600Z2. Is this different from 1600CZ2?
4. Do I need to replace the new housing gasket and replace it any time I pull the pump apart or can I use the one I just put on?
5. Would it hurt anything to put plumbers grease on the housing gasket?
I have read that I need to be very careful not to get any grease on or touch the ceramic and certain portions of the seal.
Any tips you can give on the shaft assembly replacement would be welcome. Is this something that is difficult to do right or are my chances good of fixing this leak properly?

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. You obviously know how to get the housing apart and back together as you changed the housing gasket. This time take a look at the inside of the housing for any obvious cracks in the body (it's unlikely, but possible that the body failed) - if you find no cracks, it's time for the SP 1600 Z 2 (my bad- there is another part that has the "C" before the "Z 2") 
