Haven't had my 8/1 or VA bottom ends apart to look for felts, but many earlier machines had such felt rings in recesses round the shafts, is it possible that
the parts illustration shows the felt separately, but it actually fits in the housing recess as Jimboz describes. I seem to recall having quite some trouble compressing felt into grooves on other early motors including SR's and ST's, though these could be changed for ordinary seals. Combustor.