Installing inner coolant seal

Hello everyone,

I will begin rebuilding my engine soon. The seal kit I bought includes an inner coolant jacket where the orange material is encased by a transparent plastic-like material. The shape of the cross section of the inner coolant jacket is circular where is the outer is rectangular.

I will post pics as soon as I find my camera.

The way the inner jacket fits into the housing inner sleeve doesn't seem like it would form a complete air tight seal? Does the seal reform as the engine is compressed together or is it good enough as is?

Thanks

Installing inner coolant seal